Just over half of pension credit claims processed in recent months were not awarded, according to government data obtained by a wealth management firm.
Between April and December 1 2024, 91,000 pension credit claims were awarded while 92,000 were not, according to data from the Department for Work and Pensions (DWP).
The figures were obtained following a freedom of information (FOI) request by pension provider and financial adviser Quilter.
The figures also show that, from April 2023 to March 2024, a slightly higher number of claims were awarded (134,000) than those that were not (112,000).
In July, Chancellor Rachel Reeves announced the winter fuel allowance for pensioners would be limited to only those claiming pension credit or other means-tested benefits, as part of measures aimed at filling a “black hole” in the public finances.
If you are eligible for Pension Credit you could qualify for this year’s Winter Fuel Payment (or Pension Age Winter Heating Payment in Scotland), if you apply by 21st December 2024
— Department for Work and Pensions (@DWPgovuk) December 16, 2024
Find out more: https://t.co/kMBkLdMTKR pic.twitter.com/btF52J7f4y
The number of pensioners in receipt of the payment is expected to fall by around 10 million, from 11.4 million to 1.5 million.
The figures were released ahead of a deadline of December 21 for making a backdated claim for pension credit to receive the winter fuel payment.
Jon Greer, head of retirement policy at Quilter, said: “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.
“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.”
A Government spokesperson said: “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.”
DWP Winter Fuel Payment deadline
Pensioners who may be set to miss out on the £300 Winter Fuel Payment have days to act and become eligible for the cost of living boost.
The Winter Fuel Payment was previously available to almost everyone in the UK born before September 25, 1957 to help cover their heating costs.
However, from this winter only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment.
For the majority of people, the deadline to become eligible for the Winter Fuel Payments has passed.
However, there are households who can still qualify for the £300 cost of living payment.
Pension Credit applications can be backdated by three months, meaning pensioners who apply for the benefit by December 21 will also qualify for the Winter Fuel Payment.
The Treasury said the changes to Winter Fuel Payment eligibility would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million – so just under 10 million would miss out.
They added that about £1.5 billion will be saved per year by targeting winter fuel payments.
What is Pension Credit?
Pension Credit is designed to help people over State Pension age and on a low income with daily living costs, though you do not need to be in receipt of State Pension to receive it.
It tops up a person’s income to a minimum of £218.15 per week for single pensioners and to £332.95 for couples.
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- DWP issues major Winter Fuel Payment update for 1.3 million pensioners
- Keir Starmer says it 'makes sense' to make change to DWP Winter Fuel Payments
- Ministers considering new changes to £300 DWP Winter Fuel Payment
You could get an extra £81 a week if you claim any of the following disability benefits:
- Attendance Allowance
- the middle or highest rate from the care component of Disability Living Allowance (DLA)
- the daily living component of Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- the daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate
Currently, around 1.4 million pensioners in Britain receive Pension Credit. However, many are still not claiming this extra financial help.
Other benefits are also available to those on pension credit such as assistance with housing and council tax costs, as well as scoring extra help with heating bills.
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