A spike in pension credit applications has been recorded, with a 64% jump in successful claims after the Government announced that winter fuel payments would be means-tested. Department for Work and Pensions ( DWP ) figures show that 117,800 pension credit claims were awarded during the period July 29 2024 to February 23 2025, marking a 64% increase from 72,000 between July 31 2023 to February 25 2024.
On July 29 2024, the Government announced that from winter 2024, winter fuel payments would be dependent on receiving another means-tested benefit, as part of measures to fill a “black hole” in the public finances. This meant the number of pensioners receiving the payment would be reduced by around 10 million, from 11.4 million to 1.5 million.
Pension credit is the primary benefit by which pensioners will receive the winter fuel payment. The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.
The DWP said that the highest recorded level of weekly pension credit claims awarded by the Department was the week commencing January 20 2025, with 7,600 claims awarded. In addition to the thousands of successful claims, many were rejected.
The DWP declined 114,500 pension credit claims from between July 29 2024 and February 23 2025, representing a 133% increase in not awarded figures compared with 49,100 claims rejected between July 31 2023 and February 25 2024.
Joanna Elson, chief executive of Independent Age said that while the jump in successful applications is good news, “it is concerning that there were 114,500 unsuccessful applications. “This represents a success rate of 51%. There is a story behind each application, and many people living on a low income would have applied in hope but found out they are just a few pounds above the pension credit threshold, meaning they also lost a vital lifeline in the winter fuel payment.
“The influx of both successful and unsuccessful applications clearly illustrates that many older people were concerned about not having enough money to get through the winter. “Our helpline received thousands of calls from people in later life that were looking for financial support and making drastic cutbacks just to get by, from going to bed in winter clothing to only having one meal a day. This is unacceptable.
“Linking pension credit to the winter fuel payment so hastily was misguided. Almost one million eligible people do not receive pension credit, meaning they lost the winter fuel payment despite living on a low income.” The Department cleared 232,200 pension credit claims from July 29 2024 to February 23 2025, representing a 92% increase compared with 121,100 claims being cleared during the comparable 2023/24 period.
The figures also show that for the 2024/25 year to date, the DWP has received 300,000 pension credit applications, a significant increase compared to 251,100 applications received during the whole of 2023/24. The most recent week data is available (the week starting February 17 2025) shows there are 33,700 outstanding pension credit claims still to be processed.
The DWP said that in response to the surge in applications, it deployed 500 additional support staff to process them. It said that in addition to a campaign to boost awareness of pension credit, it is exploring further options to drive up claims, including writing to pensioners who make a new claim for housing benefit and who appear to be entitled to pension credit.
Secretary of State for Work and Pensions Liz Kendall said: “I’m delighted we’ve been able to reach so many pensioners who need to be on pension credit, which can be a lifeline to so many on low incomes.” Sarah Pennells, consumer finance specialist at Royal London, said: “You can backdate your claim for pension credit by up to three months, and the sooner you claim, the sooner you could start receiving payments.
“Not only that, but, if you’re entitled to pension credit, you’ll be able to get extra help with costs such as rent and council tax, which could make a big difference.” Stephen Lowe, group communications director at retirement specialist Just Group, said: “There is still a huge number of pensioners who are failing to claim – it may be they are simply unaware of the benefit, assume they are not eligible or do not know how to claim.
“Our own research among over-65s found that nearly four in 10 (38%) pensioner homeowners and one in seven (15%) of renters had never checked their benefit entitlement.” Sir Steve Webb, a former Liberal Democrat pensions minister, who is now a partner at pension consultants LCP (Lane Clark & Peacock), said: “Whilst every extra person claiming pension credit is welcome, what is striking about these figures is that they are a drop in the ocean compared with the numbers who have lost out.
“The Government’s own figures suggest that roughly 10 million pensioners have missed out on a winter fuel payment this winter, so an extra 50,000 or so successful pension credit claims represents just 5% of this number.
“The vast majority of pensioners will still lose from this policy, including many who are just above the pension credit cut-off line but who are by no means comfortably off.” Rachel Vahey, head of public policy at AJ Bell, said the jump in pension credit claims coming off the back of the decision to means-test winter fuel payments “may leave a bad taste with some”.
She added: “Pension credit has historically been chronically under-claimed, with over a third of households who could be eligible failing to make a claim each year.”