If you’re a UK pensioner who owns a home, you may be wondering whether new rules will change your benefits. Headlines can be scary, but here’s the simple truth: for Pension Credit and pension-age Housing Benefit, the home you live in is normally ignored when your claim is assessed.
What has changed in 2025 is a continued push by the Department for Work and Pensions (DWP) to verify capital more closely, plus confirmed capital thresholds and tariff income rates that affect how your savings and other property are treated.
Below is the no-nonsense guide you can rely on, including what’s counted, what’s ignored, and what to do next.
The quick headline takeaway
- Your main home (the place you normally live) is disregarded for Pension Credit and typically for Housing Benefit at pension age.
- Second homes, buy-to-let, inherited property not lived in, and most other capital can count against you.
- In 2025, the government reiterated rules on when property is counted and reminded councils about special disregards (like temporary absence due to fleeing violence, usually up to 12 months).
- Savings/capital rules and tariff income rates for 2025/26 are confirmed and in force.
How the DWP treats homes and capital in 2025
1) Your main home (primary residence)
For Pension Credit, the value of your home where you live is a disregarded asset. That means it does not count as capital when calculating entitlement. This long-standing rule continues to apply in 2025.
2) Additional property you do not live in
If you own another property (for example, a former home you now rent out, a holiday let, or a share of a property you don’t live in), the equity can be treated as capital for Housing Benefit and Pension Credit calculations, unless a specific disregard applies (e.g., you’re taking steps to sell, or a close relative who is over State Pension age or incapacitated lives there).
3) Special disregards and temporary absences
There are important protections. For example, if someone flees their home due to violence but intends to return, Housing Benefit can treat them as still living there for up to 12 months, so the home remains disregarded while they get help with alternative accommodation.
4) Savings, capital thresholds, and tariff income
For Pension Credit and pension-age Housing Benefit in 2025/26, the first £10,000 of capital is disregarded. Above that, a tariff income is assumed at £1 per £500 (or part of £500).
Unlike working-age benefits, Pension Credit does not have an upper capital limit; instead, the tariff income reduces entitlement. (If you receive Pension Credit Guarantee Credit, there is no capital upper limit for your Housing Benefit either.)
What counts in 2025 for pension-age claims
| Item | How it’s treated (Pension Credit / Pension-Age Housing Benefit) | Key figure / window |
|---|---|---|
| Main home (you live in it) | Ignored (disregarded) as capital | Still disregarded in 2025. |
| Second home / property you don’t live in | Counts as capital (equity value), unless a specific disregard applies | Assessed case-by-case. |
| Inherited property (not your home) | Usually counts as capital; may be disregarded if you’re taking steps to sell or a qualifying relative lives there | Disregards apply if actively marketing; check timing rules. |
| Temporary absence (fleeing violence) | Treated as still occupying your home; home stays disregarded | Up to 12 months in many cases. |
| Savings/capital (pension age) | First £10,000 ignored; tariff income over that | £1 per £500 (or part) above £10,000. |
| Upper capital limit | No upper capital limit for Pension Credit; if you get PC Guarantee Credit, HB has no upper limit either | Applies 2025/26. |
2025 context you should know (briefly)
- The DWP continues a fraud and error crackdown, increasing verification of savings and property data across benefits. For pensioners this mostly means more checks, not a change to the rule that your main home is disregarded.
- Staying transparent with information about additional properties or savings is essential.
Practical steps for pensioner homeowners
1) Confirm what you own
Make a list of all capital: savings accounts, ISAs, premium bonds, and any property you do not live in (with estimates of equity). Your main home can be listed for clarity, but remember it’s disregarded.
2) Check your Pension Credit position
Use a benefits calculator or speak to an adviser to see if you qualify for Pension Credit. Even small awards can unlock passported help such as full Council Tax Reduction and free TV licence at 75.
3) If you own an extra property
Be prepared to evidence ownership and equity. If you’re selling, keep paperwork showing you’re actively marketing the property. If a close relative who is eligible lives there, ask about disregards.
4) If you had to leave home due to violence
Tell the council immediately. You may be treated as still living in your home for up to 12 months, so the home stays disregarded while you get help paying for temporary accommodation.
5) Keep savings records up to date
Because of tariff income rules, even small changes above £10,000 can alter your weekly entitlement. Keep statements ready for checks.
Common myths — busted
- “My main home now counts against my claim.”
False. Your main home is still disregarded for Pension Credit and typically for pension-age Housing Benefit. What you need to watch is other property and savings. - “There’s a strict capital cap for Pension Credit.”
False. There’s no upper capital limit for Pension Credit itself; instead, tariff income reduces what you can get once you have more than £10,000. - “If I leave home because of violence, I’ll lose help.”
Not necessarily. Temporary absence rules can protect you so your home remains disregarded while you get help with rent elsewhere.
The 2025 landscape can sound confusing, but the fundamentals remain clear: your main home is not counted for Pension Credit and pension-age Housing Benefit. What really matters is other property and savings.
With £10,000 of capital disregarded and tariff income applied above that, your entitlement may move up or down as your savings change.
If you own a second property, be ready to show evidence; if you’re selling or a qualifying relative lives there, ask about disregards.
And if you’ve had to flee your home, remember the temporary absence rules can protect you while you get re-settled. Stay informed, keep records, and check Pension Credit — a small award can unlock big help.
FAQs
Does the DWP now count my main home as capital?
No. For Pension Credit and pension-age Housing Benefit, your main home is still disregarded. Extra properties, however, generally count.
What capital limits apply at pension age in 2025/26?
The first £10,000 is ignored. Above that, a tariff income of £1 per £500 (or part) applies. There is no upper capital limit for Pension Credit; entitlement is reduced by tariff income instead.
I had to leave my home due to violence — will its value stop my Housing Benefit?
There are protections: you can be treated as still occupying your home for up to 12 months, so the value remains disregarded while you get help with temporary accommodation.