Published On: Sat, Nov 30th, 2024
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DWP Pension Credit update as pensioners dealt ‘disastrous’ blow | Personal Finance | Finance


Pensioners across the UK have been dealt a major blow this winter following the government’s “disastrous” decision to ration this year’s Winter Fuel Payment.

A Labour rule change to eligibility criteria means an estimated 780,000 pensioners in England and Wales won’t get the payment this year, which is worth up to £300.

Households will now only qualify for it if they are receiving Pension Credit, or other means-tested benefits.

Claims for Pension Credit have soared by 145 percent following the rule change, but just 42,500 applications have been approved – less than 5 percent of the 880,000 people Labour said were missing out on the benefit in July.

Some 150,000 applications for the benefit have been submitted in the 16 weeks since Chancellor Rachel Reeves announced only those receiving Pension Credit would be eligible for Winter Fuel Payments.

But the number of approvals has increased by just 17 percent over the same period and refusals have almost doubled from 27,100 to 53,100.

Age UK has said it’s a “massive disappointment” that so many pensioners are having claims turned down and slammed the government for “struggling to keep up” with applications.

Caroline Abrahams, charity director at Age UK, said: “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.”

Pensioners are being urged to apply for Pension Credit before December 21 to secure their £300 Winter Fuel Payment for this year.

The Department for Work and Pensions (DWP) issued an update this week to remind pensioners on a low income to apply ahead of the deadline to secure the vital winter support, and said it’s deployed 500 extra staff to help handle claims.

All eligible claimants will get up to £300 with the Winter Fuel Payment, as well as any backdated Pension Credit arrears.

Pension Credit could be worth on average up to £3,900 a year and acts as a gateway to other important benefits including help with housing costs, council tax reductions and NHS treatment costs.

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.”

You can apply for Pension Credit online via GOV.UK or by calling the Pension Credit claim line on 0800 99 1234.



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