Thousands of state pensioners set to lose £3,900 each after DWP decision

A Pension Credit warning has been issued - as more than HALF of claims for the £3,900 benefit prove to be unsuccessful. The Department for Work and Pensions ( DWP ) is encouraging Pension Credit applications because it could hand state pensioners a £300 or £200 Winter Fuel Allowance.

Some 150,000 applications were submitted after Chancellor Rachel Reeves' July announcement with the Government processing 51 per cent of these claims. As of April 1, 81,500 applicants have been unsuccessful which is only 500 more than were approved for the benefit.

However, just 42,500 applications have been approved during this period, representing less than five per cent of the 880,000 people identified as missing out on the benefit in July. As of April 1, there have been 215,200 applications for Pension Credit, of which 161,800 have been processed, leaving a backlog of 53,400.

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Refusals have nearly doubled from 27,100 to 53,100 applications. The government said: "These statistics are being published given public interest in Pension Credit claims following the Chancellor’s announcement on the 29 July 2024 that Winter Fuel payments will be limited to those on Pension Credit or other means tested benefits from Winter 2024. The figures add to the wider set of information on those who are claiming Pension Credit.

"The figures also help reduce the administrative burden of answering Parliamentary Questions, Freedom of Information requests and other forms of ad hoc enquiry." Caroline Abrahams, Charity Director at Age UK, called the high rejection rate "a massive disappointment".

"More than half of the claims processed during the period covered by these statistics were unsuccessful, an astonishingly high figure", she said. She highlighted that applicants wouldn't go through the "relatively comprehensive form" unless they desperately needed the money.

Abrahams criticised the DWP's handling of claims, noting "long delays" due to the system being overwhelmed.