Overview

• Under DWP rules, savings over £10,000 are treated as income at a rate of £1 per week for every £500 above the threshold, which can reduce or cancel Pension Credit entitlement.
• Retirement specialist Stephen Lowe notes the threshold has not moved since 2009 and equates to an assumed return of about 10.4%, which he argues erodes support for prudent savers.
• Former pensions minister Ros Altmann says missing Pension Credit can also mean losing council tax and energy rebates, free TV licences and some healthcare concessions.
• Guidance highlights that some income is disregarded and that extra amounts for certain housing costs or disability can apply, but warns that giving away assets can be treated as deprivation of capital.
• This year’s Winter Fuel Payment no longer requires Pension Credit, though a separate £35,000 taxable‑income test can count savings interest and still block eligibility.