Pensioners reminded of four-week rule that affects £18,000 DWP payment

Pensioners in the UK are reminded of a four-week rule that could affect a payment worth up to £18,000 a year. Failing to adhere to certain guidelines could see this Department for Work and Pensions (DWP) cash stopped.

It is estimated that around 1.4 million people across the UK are in receipt of Pension Credit. This is a means-tested, tax-free benefit for people who have reached State Pension age and are on a low income.

It is not a flat rate payment, instead it tops up your existing income. For example, it can top up your joint weekly income to £346.60 if you have a partner – equivalent to £18,023.20 a year.

However, on average, Pension Credit is worth £3,900 to £4,000 a year in direct payments. Like other benefits, there are specific eligibility criteria.

You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit. When you apply for Pension Credit your income is calculated.

If you have a partner, your income is calculated together. Pension Credit tops up:

• Your weekly income to £227.10 if you’re single
• Your joint weekly income to £346.60 if you have a partner

However, these rates are set to rise. The DWP has confirmed the Pension Credit standard minimum guarantee for the 2026/27 tax year will increase from £227.10 per week to £238 in April. The joint rate is also increasing by 4.8% from £346.60 per week to £363.25 in April.

If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Your income includes:

• State Pension
• Other pensions
• Earnings from employment and self-employment
• Most social security benefits, for example Carer’s Allowance

However, not all benefits are counted as income. For example, the following are not counted:

• Adult Disability Payment
• Attendance Allowance
• Child Benefit
• Christmas Bonus
• Council Tax Reduction
• Disability Living Allowance
• Housing Benefit
• Pension Age Disability Payment
• Personal Independence Payment
• Scottish Adult Disability Living Allowance
• Social fund payments like Winter Fuel Payment

If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

The four-week rule

It is important to note that if you leave the UK for more than a month it can affect your payments. On GOV.UK it explains that you can continue to get Pension Credit if you’re away from Great Britain for four weeks or less – for example, on a holiday.

But you must:

• Be eligible for Pension Credit when you go away
• Remain eligible for it while you’re away
• Contact the Pension Service helpline to tell them you’re going away

You can get Pension Credit for up to four more weeks if:

• You’re away from Great Britain because of the death of a close relative
• A close relative dies while you’re away and you cannot reasonably return to the UK

You cannot apply for Pension Credit if you’re already outside Great Britain. And you cannot get Pension Credit if you’re moving away from Great Britain permanently.

However, you can continue to get Pension Credit for up to 26 weeks if:

• You’ve left Great Britain for medical treatment
• You’ve left Great Britain for a period of recovery that’s been approved by a medical professional (also known as ‘approved convalescence’)
• Your partner or child is leaving Great Britain for medical treatment or ‘approved convalescence’ and you’re going with them

You can contact the Pension Service helpline on 0800 731 0469. For more information, visit the Government website here.