State pensioners losing 'vital' support payment from DWP

Thousands of state pensioners are losing a vital support payment due to the Department for Work and Pensions ( DWP ) rejecting HALF of Pension Credit claims. A £300 support payment in the form of the Winter Fuel Payment is at risk - as most Pension Credit claims are rejected by the DWP.

"With the last date for making a backdated claim for Pension Credit to receive the Winter Fuel Payment now just days away, it is vitally important that pensioners on low incomes check their eligibility," said Jon Greer, head of retirement policy at Quilter.

Tom Selby, director of public policy at AJ Bell, called it a "controversial decision" to means-test the Winter Fuel Payment. "While this new data shows that a significant proportion of claimants are being denied Pension Credit this should not stop people applying if they think they might be eligible," he said.

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"While the process of claiming pension credit can feel unfamiliar and intimidating, it is worth doing if you think you might qualify as you could boost your income by thousands of pounds," he said. A Government spokesperson defended the changes, stating: "Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has seen applications more than double with over 40,000 more pensioners now receiving it."

Fiona Peake, a personal finance expert at Ocean Finance, explained: "The cost of living crisis has hit older people hard. Aside from the immediate financial relief, claiming PensionCredit can help protect you against rising costs. With the energy price cap increasing once again at the start of January and food inflation remaining stubbornly high, claiming what you’re entitled to is a smart move. If you think you might qualify – or know someone who could – take five minutes to check.

"It’s also worth exploring other money-saving options, like reviewing energy bills, switching providers, or looking into budgeting tools to help make every penny count.”