DWP Pension Credit update shows 5% of Labour’s predicted claimants as Winter Fuel Payments start

Since Rachel Reeves announced Winter Fuel Payments would be restricted to pensioners on certain benefits, including Pension Credit, roughly 150,000 claims for the DWP income top-up have been made. However, according to new data released by the Department, 96% of claims processed by mid-November have been rejected.

The new report highlighted the dramatic spike in applicants following the announcement, which was anticipated by Labour. The Government noted, amid the backlash to the change, it would prompt people who were unnecessarily missing out on Pension Credit to claim their dues and estimated this to be 880,000 low-income pensioners in July.

Now, 42,500 applications have been approved. This makes up less than 5% of Labour’s estimate and while there are still a number of applications to process, Winter Fuel Payments have already started heading into bank accounts today.

This drastic gap between expectation and reality may indicate the changes and campaigns to drive up Pension Credit claims aren't reaching the low-income populations that are actually eligible for the benefit. It could also indicate a number of people failing to correctly submit the application, which reportedly has over 200 questions for people over the state pension age to fill out.

The report revealed the sharp spike in applications processed and decisions delivered following the Chancellor’s announcement. This sat at 63,1000 in the 16 weeks before the announcement compared to 95,300 applications cleared in the 16 weeks after the announcement.

Claims approved by the DWP increased by 17% between the 16 weeks before and after the announcement, while the number of claims not awarded increased by 96% in the same time span. Pensioners also still have a few weeks before the deadline for the Winter Fuel Payment eligibility via Pension Credit dawns.

Pensioners have until December 21 to apply for Pension Credit and still be eligible to receive Winter Fuel Payments this year, as the income top-up can be backdated by up to 3 months which would cover them during the qualifying week for Winter Fuel Payments which was in September. Independent Age has called for this deadline to be extended.

The charity claimed the recent data showed “too many older people on a low income will fall through the cracks”. Director of policy Morgan Vine told i : “This illustrates a desperate picture where people on low incomes are trying anything they can to see if there is support out there.”