Fury as more than HALF of pension credit claims are rejected

Charities today vented their fury as figures showed more than half of pension credit claims are being rejected amid a surge in applications after Labour slashed winter fuel payments.

Government data showed there were around 150,000 pension credit applications in the 16 weeks since Rachel Reeves announced she was means-testing the help with energy bills.

This compared to around 61,300 applications in the 16 weeks before the Chancellor revealed around 10 million pensioners were being stripped of the payments - worth up to £300.

On 29 July, Ms Reeves announced - from this winter - retirees in England and Wales will only get winter fuel payments if they receive pension credit or certain other benefits.

The Chancellor insisted the move was necessary to help fill a £22billion 'black hole' she claimed the previous Tory government left in this year's spending plans.

But Whitehall estimates have suggested that 100,000 extra pensioners will be pushed into poverty as a result, while critics claimed the 'cruel' move will force some pensioners to go cold this winter.

Ministers vowed to boost the take-up of pension credit with an estimated 880,000 households eligible for the support who are yet to claim.

But although the Department for Work and Pensions (DWP) figures, published today, showed a significant increase in applications, they also showed less than half were being approved.

The figures also showed, since the beginning of April to 17 November, there were 53,400 people still waiting for a decision on whether they are eligible for pension credit. 

In a comparison between the 16-week periods before and after the Chancellor's announcement, the number of pension credit claims awarded rose from 36,400 to 42,500.

But the number of pension credit claims not awarded rose from 27,100 to 53,100 in the same 16-week periods.

The 42,500 claims approved in the 16 weeks since Ms Reeves' announcement is less than 5 per cent of the estimated 880,000 households the Government previously said were eligible for pension credit but had yet to claim.

Charities accused the Government of 'struggling to keep up' with the number of pension credit claims, which were leading to 'long delays' for retirees as temperatures plunge.

Caroline Abrahams, of AgeUK, said: 'It's a massive disappointment to see so many older people applying for pension credit and being turned down because they are ineligible.

'In fact, more than half of the claims processed during the period covered by these statistics were unsuccessful, an astonishingly high figure.

'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 – something Age UK research fully bears out.

'Another conclusion to be drawn from these statistics is, try as they might, DWP has been struggling to keep up with the volume of incoming claims, leading to some long delays.

'The system was not designed to deal with so many applications all at once – a situation which is a direct result of the Government's disastrous decision to severely ration the winter fuel payment with little notice.

'There's still time for the Treasury to soften the blow on pensioners living on low and modest incomes before the worst consequences of its policy change play out this winter, but only just.'

Tory MP Helen Whately, the shadow work and pensions secretary, said: 'The Government has said publicly that it wants everyone eligible for pension credit to sign up. But Labour knew all along that wouldn't happen.

'The figures out today show us that three-quarters of a million of the poorest pensioners are likely to miss out on winter fuel payments this winter.

'This is the stark reality of Labour's political choice to cut the winter fuel payment. Pensioners are asking - is this Government choosing to be this cruel or are they just incompetent?'

Liberal Democrat MP Daisy Cooper, the party's Treasury spokesperson, said: '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.

'Ministers rushed through these unfair changes and now vulnerable pensioners are set to pay the price.

'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.'

The Government has also been left facing a court battle with a major trade union over claims the winter fuel payment axe was illegal.

Unite, which donated hundreds of thousands of pounds to Labour candidates at the election, has declared it will go ahead with a judicial review of the controversial policy.

General secretary Sharon Graham said the decision to 'pick the pockets of pensioners was wrong on every level'.

The union has accused the Government of breaching its legal duties by not referring the cut to the Social Security Advisory Committee (SSAC) and by failing to consider the impact on disabled people, among other grounds.

Ministers are not required to refer regulations on benefits to the SSAC if they are a matter of 'urgency', something the Government relied on when implementing the winter fuel cut.

The Government also conducted an 'equalities analysis', which was released under the Freedom of Information Act, but has been criticised for not carrying out a full impact assessment of the policy.

Unite says it is acting on behalf retired members who are struggling to get by. 

The union made a formal application to the High Court for leave to go forward with a full Judicial Review last week. 

But Ms Graham said: 'Labour's decision to pick the pocket of pensioners was wrong on every level. The government has been given every opportunity to reverse its decision and it has failed to do so.

'This is a rushed, ill-thought out policy and the government clearly failed to follow the proper legal measures before executing it. With winter approaching the courts must now hold the government to account and reverse this cruel cut as quickly as possible.'

Unite previously donated millions of pounds to Labour, but has scaled back its funding more recently as it criticised Sir Keir's leadership.  

Downing Street defended efforts to increase the number of pension credit claimants.

The Prime Minister's official spokesman said: 'We clearly want to see every pensioner who's entitled to pension credit claim it.

'We're working hard to ensure as many pensioners as possible take up the support they're entitled to.

'DWP have surged hundreds of additional staff to process claims. They've written to 120,000 pensioner households which are in receipt of housing benefit but are not claiming the pension credit they are likely to be entitled to.

'Today's figures show that the average weekly number of applicants has doubled, we are seeing an average of 5,000 more pension credit applications per week.'