Pension Credit applications surge as DWP suffers 'massive disappointment'

Following the government's call to apply for Pension Credit, hundreds of thousands of pensioners have responded in order to secure their Winter Fuel Payment of £200 to £300. This comes after Labour altered the rules in July, limiting the benefit to older Brits with lower incomes.

Despite the response, campaigners have labelled the numbers a "massive disappointment." Since Chancellor Rachel Reeves announced that the annual winter heating aid would be restricted to Pension Credit claimants, applications for the under-claimed benefit have skyrocketed by an impressive 145 per cent.

The Department for Work and Pensions' latest data reveals a significant backlog of applications due to this surge, with 53,400 individuals still awaiting a decision. Unfortunately, around half of the 161,800 processed applications were rejected by the DWP, meaning that 81,500 will miss out on the previously universal Winter Fuel Payment this year, as they do not meet the Pension Credit maximum income threshold of £218 per week for individuals and £332 for couples.

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While the government has expressed satisfaction with the outcome of its extensive drive to enrol individuals for Pension Credit, now benefiting 42,500 households, some charities beg to differ, reports the Manchester Evening News. Age UK's Charity Director Caroline Abrahams has said: "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 believes that means-testing the Winter Fuel Payment by linking it to Pension Credit could save taxpayers around £1.5 billion annually and assist in addressing the "£22 billion black hole" left by the previous Conservative administration.

Additionally, the government highlights that the State Pension is set to increase by £470 in April, with further assistance available via local councils and the £1 billion Household Support Fund.

The revelation that only 42,500 Brits over the age of 66 are currently benefiting from Pension Credit—just a small portion of the estimated 880,000 who were reported in July as not claiming despite being eligible—has sparked concerns. Many fear that some of the poorest pensioners will face difficulties heating their homes this winter, especially since those on the full State Pension of £221 per week don't qualify for the benefit.

Liberal Democrat MP Daisy Cooper has spoken out against the situation, stating: "These figures are a damning indictment of the government's failure to protect pensioners this winter."

She added, "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."

On the other hand, Minister for Pensions Emma Reynolds MP has commented: "We're pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible."

With a sense of urgency due to the date nearing, she advised, "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."