Finance

Pension Credit claims up soar by 145% after winter fuel payment axe


The decision to scrap the Winter Fuel Allowance for pensioners who are not claiming Pensions Credit has seen new claims for the benefit soar by 145 per cent in the 16 weeks after the move was announced.

The Department for Work and Pensions (DWP) said it received around 150,000 Pension Credit claims in the 16 weeks since the announcement on 29 July compared to around 61,300 Pension Credit claims in the 16 weeks before the announcement.

A DWP spokesperson said it had also seen the number of cleared Pension Credit claims increasing, from around 63,100 in the 16 weeks before the July announcement to 95,300 in the 16 week since the announcement.

“This represents a 51 per cent increase in Pension Credit claims cleared by DWP in the past 16 weeks compared to the 16 weeks before.”

Comparing to the 16-week periods before and after the announcement, the number of Pension Credit claims awarded increased by 17 per cent, from 36,400 to 42,500, alongside a 96 per cent increase in the number of Pension Credit claims not awarded from 27,100 to 53,100.

Weekly Pension Credit claims received, claims cleared, and claims awarded from 1 April 2024 to 17 November 2024

Week beginningNumber of Pension Credit claim applications receivedNumber of Pension Credit claims clearedNumber of Pension Credit claims cleared – awardedNumber of Pension Credit claims cleared – not awarded
01 April 243,9003,4002,1001,300
08 April 244,5004,1002,2001,900
15 April 244,5004,3002,3002,000
22 April 244,2005,0002,5002,500
29 April 243,8004,7002,4002,400
06 May 243,4004,0002,3001,700
13 May 244,1004,0002,4001,600
20 May 244,0003,9002,3001,500
27 May 243,3003,5002,0001,500
03 June 244,2003,2001,9001,300
10 June 244,0003,8002,3001,600
17 June 243,4003,8002,4001,500
24 June 243,2003,9002,4001,600
01 July 243,8004,1002,5001,600
08 July 244,1003,4002,1001,400
15 July 243,3003,5002,1001,400
22 July 243,5003,9002,3001,600
29 July 248,0004,3002,2002,000
05 August 247,3004,3002,2002,100
12 August 245,9004,0002,1002,000
19 August 248,4004,9002,4002,400
26 August 249,0004,6002,0002,600
02 September 2410,7005,4002,3003,000
09 September 2413,4006,3002,4003,900
16 September 2411,9006,0002,4003,700
23 September 249,9005,6002,0003,700
30 September 248,3005,1001,9003,300
07 October 248,2006,0002,3003,700
14 October 249,6006,6003,0003,600
21 October 249,0007,1003,2004,000
28 October 2410,0006,8003,2003,600
4 November 249,8008,4004,3004,200
11 November 2410,6009,9004,6005,300

Tom Selby, director of public policy at AJ Bell, said: “Rachel Reeves has been hauled over the coals over her shock decision to means-test the Winter Fuel Payment this year, so the chancellor will be hoping tomorrow’s figures at least show attempts to raise awareness of Pension Credit have resulted in an increase in applications from low-income retirees.

“Pension Credit has historically been chronically underclaimed, with over a third of households who could be eligible failing to make a claim each year. This could be for a number of reasons, from a lack of awareness to difficulties filling out forms or a reluctance to be seen as a benefit claimant, but the result is hundreds of thousands of people missing out on a vital source of income worth thousands of pounds a year on average.

“This year the need to claim Pension Credit is even more pressing as it will also unlock the Winter Fuel Payment, worth up to £300. Anyone who thinks they might be entitled to Pension Credit still has time to unlock their Winter Fuel Payment, but they need to get their application in by 21 December.

“While the process can feel intimidating, it is worth doing if you think you might qualify. The DWP offers a useful online tool to check if you might qualify for Pension Credit before going through the application service, and organisations like Citizens Advice and Age UK can also help guide you through the process.”

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