DWP issues Pension Credit update with 'clear message' as claims soar

Pension credit applications have surged by nearly 150 per cent following the government's decision to means-test the Winter Fuel Payment this year, according to recent statistics.

However, only 42,500 claims have been successful during this time – which represents less than 5 per cent of the 880,000 eligible individuals the government identified as not receiving the benefit back in July.

Chancellor Rachel Reeves announced at the end of July that only certain benefits recipients, including those on Pension Credit, would qualify for a Winter Fuel Payment. Since then, around 150,000 pension credit claims have been lodged over 16 weeks.

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Ms Reeves said that this policy change would save approximately £1.5 billion and was necessary to address a £22 billion "black hole" in public finances, which Labour attributes to the previous Conservative administration.

The increase represents a 145 per cent rise in claims compared with the 16 weeks before the Chancellor’s announcement.

But the number of approvals has risen by just 17 per cent over the same period, while refusals almost doubled from 27,100 to 53,100.

The new figures emerge as parts of Britain face a cold snap, with the Met Office issuing health alerts due to the cold in northern England and the Midlands.

The Government is actively encouraging pensioners to verify their eligibility for pension credit, reminding them that applications made before December 21 will be backdated to include the Winter Fuel Payment.

To manage the influx of claims, the Department for Work and Pensions has introduced an additional 500 staff members to assist with the process.

Pensions minister Emma Reynolds said: "We’re pleased to see more pensioners are now receiving pension credit and our staff are processing claims as quickly as possible.

“With December 21 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.”

Since the Chancellor’s announcement, the Government has spent around £250,000 on advertising relating to pension credit, a freedom of information request by investment managers Quilter Cheviot has found.

Rosie Hooper, a chartered financial planner at the company, said the figure was “surprising... given the importance of reaching those in need”.

Liberal Democrat Treasury spokesperson Daisy Cooper said the figures were a “damning indictment of the Government’s failure to protect pensioners this winter”.

She said: “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.”