Pension benefit applications surge after Labour rule change branded 'massive disappointment'

Hundreds of thousands of pensioners have heeded the government's plea to apply for Pension Credit and avoid missing out on the £200 to £300 Winter Fuel Payment, after Labour changed the rules in July to restrict the benefit to older Brits with lower incomes. But despite the numbers, campaigners have branded them a 'massive disappointment.'

In the months since Chancellor Rachel Reeves announced that the annual winter heating help for all pension-age Brits would be restricted to Pension Credit claimants, there has been an incredible 145 per cent surge in applications for the under-claimed benefit. Due to this surge, the Department for Work and Pensions' (DWP) latest data also shows a large backlog of applications, with 53,400 people still awaiting a decision.

Sadly, for many looking for help this winter, around half of the 161,800 applications processed so far were rejected by the DWP. This means that 81,500 will miss out on the previously universal Winter Fuel Payment this year, due to not meeting the Pension Credit maximum income threshold, which is £218 per week for individuals and £332 for couples.

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While the government has stated it is "pleased" with the result of its months-long sign up drive for Pension Credit, which has now seen a total of 42,500 households actually given the benefit, some charities have been critical. Charity Director at Age UK Caroline Abrahams told the Independent: "It’s a massive disappointment to see so many older people applying for Pension Credit and being turned down because they are ineligible.

“Because the process of applying for Pension Credit requires you to fill in a relatively comprehensive form you wouldn’t bother unless you really need the money, so these statistics also reflect the acute concern felt by many older people at the loss of their Winter Fuel Payment."

Chancellor Reeves has estimated that means-testing the Winter Fuel Payment through tying it to Pension Credit would save the taxpayer £1.5 billion per year, and help to plug the "£22 billion black hole" left by the previous Conservative government. The government has also pointed out that the State Pension is set to rise by £470 in April and that discretionary help is available from local councils through the £1 billion Household Support Fund.

But the 42,500 Brits over the age of 66 now receiving the benefit are just a fraction of the total 880,000 estimated in July to be missing out on Pension Credit despite qualifying. This has led to concerns that many of the poorest pensioners could struggle to heat their homes this winter, with anyone receiving the full State Pension of £221 per week ineligible for the benefit.

Liberal Democrat MP Daisy Cooper responded to the figures, saying: "These figures are a damning indictment of the government’s failure to protect pensioners this winter.

"Millions of vulnerable pensioners are still set to lose their Winter Fuel Payment just as the cold weather bites. We are now reaching the point of no return for the government to recognise their mistake, scrap this unfair cut and avoid older people being forced to choose between heating and eating this winter.”

Minister for Pensions Emma Reynolds MP said: "We’re pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible.

"With the 21 December approaching, my message is clear: check if you are eligible for Pension Credit and if you are then apply, as it unlocks a range of benefits including the Winter Fuel Payment."