Pension Credit › Savings & capital
Pension Credit and Savings: What Counts, and How Much Can You Have?
Last updated: April 2026 · Reviewed by: Silverwings Benefits Team · Source: GOV.UK
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Savings put people off applying for Pension Credit more than almost anything else — many assume that having "too much" in the bank rules them out. In reality, Pension Credit has no upper savings limit at all. What it does have is a rule for turning savings above £10,000 into a small amount of assumed weekly income, which is added to your other income for the assessment.
That means having £15,000, £30,000 or more in savings does not automatically disqualify you — it simply changes the sum. This page explains exactly how that sum works, with worked examples, so you can see roughly where you stand before you check properly.
The £10,000 disregard
The first £10,000 of savings and capital is completely ignored. It makes no difference whether you have £500 or £9,999 — none of it counts against you.
What happens above £10,000: tariff income
For every £500 (or part of £500) you hold above £10,000, the DWP assumes you receive £1 a week in income from it — regardless of what that money is actually earning in interest. This is called "tariff income".
- £10,000 savings → £0 assumed weekly income
- £12,000 savings → £2,000 above the disregard → £4 a week assumed income
- £15,500 savings → £5,500 above the disregard → £11 a week assumed income
- £25,300 savings → £15,300 above the disregard, rounded up → £31 a week assumed income
That assumed income is then added to your pension and any other income when working out whether you are under the Guarantee Credit threshold (£218.15 a week single / £332.95 a week couple, 2024/25 rates). Having, say, £20,000 in savings adds roughly £20 a week to the sum — often still leaving plenty of room under the threshold.
What counts as savings and capital
- bank and building society accounts
- cash savings and Premium Bonds
- stocks, shares and investment ISAs
- a second property or land you do not live in
- money held in trust that you can access
What does not count
- the home you live in
- personal possessions such as your car, furniture or jewellery
- most pension pots you have not yet drawn from
There is no cut-off figure where Pension Credit simply stops being possible — the sum just changes.
Frequently asked questions
Is there a maximum amount of savings I can have and still get Pension Credit?
No. Unlike some means-tested benefits, there is no upper capital limit for Pension Credit. Larger savings simply add more assumed weekly income to the calculation.
Does the interest my savings actually earn matter?
No — the DWP uses the flat £1-per-£500 tariff income rule regardless of the real interest rate you are getting.
Do Premium Bonds count as savings for Pension Credit?
Yes, the value of Premium Bonds counts as capital in the same way as a bank balance.
What if my savings change from month to month?
The DWP looks at your capital at the time of your claim and reassesses if you report a significant change, rather than tracking every fluctuation.
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