Government data, recently obtained by a wealth management firm, reveals that just over half of Pension Credit claims processed in recent months were rejected. Between April and December 1, 2024, out of 183,000 pension credit applications, only 91,000 were successful, according to the Department for Work and Pensions (DWP).
This information came to light following a freedom of information (FOI) request by Quilter, a pension provider and financial adviser. Additionally, the data indicates that from April 2023 to March 2024, there was a marginally higher success rate, with 134,000 claims awarded compared to 112,000 denied.
In a move to address a “black hole” in public finances, Chancellor Rachel Reeves announced in July that the winter fuel allowance for pensioners would be restricted to those on pension credit or other means-tested benefits. Consequently, the number of pensioners eligible for the payment is set to plummet by approximately 10 million, dropping from 11.4 million to a mere 1.5 million.
These figures have been disclosed as the deadline of December 21 looms for pensioners to submit a backdated claim for pension credit in order to qualify for the winter fuel payment.
Jon Greer, head of retirement policy at Quilter, has urged pensioners: “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. 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 further outlined the benefits, stating “Pension credit guarantees a weekly income of £218.15 if you’re single or £332.95 if you have a partner. It also unlocks a variety of other benefits that can help with housing costs, council tax and heating bills.”
Tom Selby, director of public policy at AJ Bell, commented on the current state of affairs following Chancellor Rachel Reeves’ divisive manoeuvre, saying: “Chancellor Rachel Reeves’ controversial decision to means-test the winter fuel payment means it is more important than ever that low-income retirees claim pension credit this year.”
Selby highlights the urgency in claiming, adding “Even a claim for a small amount of Pension Credit top-up during the ‘qualifying week’ of September 16 to 22 should trigger a winter fuel payment worth up to £300. Because of the way the backdating rules work, the deadline for making a claim for this period is just a few days away on December 21.
“Alongside the income top-up and winter fuel payment, those in receipt of pension credit are also entitled a range of other valuable benefits, including help with heating costs, housing benefit, dental treatment and free TV licences (for people aged 75 or over). 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.
“The DWP offers a useful online tool to check if you might qualify for pension credit before going through the application service, or you can contact the pension credit claim line to discuss your eligibility. Organisations like Citizens Advice and Age UK are also a great source of independent information and help.”
A Government spokesperson commented: “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, as well as the winter fuel payment. We have deployed additional staff to support processing applications, seeing a 51% increase in the number of cleared claims since the Chancellor’s announcement.
“Many others will also benefit from the £150 warm home discount and cold weather payments this winter while our extension of the household support fund will help with the cost of food, heating and bills.”
The Government has stated that approximately 500 extra staff have been assigned to assist with processing applications. Disabled pensioners receive additional disability benefits and may also be eligible for pension credit, depending on their individual circumstances.
