Hundreds of thousands of pensioners have responded to the government’s call to apply for Pension Credit in order to receive the Winter Fuel Payment. The benefit was restricted to older Brits with lower incomes by the Labour government in July, leading to a surge in applications. However, campaigners have expressed disappointment with the outcome.
Since the announcement of the changes, there has been a 145% increase in applications for Pension Credit, leading to a backlog of 53,400 people still waiting for a decision from the Department for Work and Pensions (DWP). Out of the 161,800 applications processed, half have been rejected due to not meeting the income threshold for Pension Credit.
While the government is pleased with the increase in Pension Credit applications, charities like Age UK have criticized the high number of rejections. Many older people who applied for Pension Credit and were denied are now at risk of losing their Winter Fuel Payment, which was previously universal for pension-age Brits.
Chancellor Rachel Reeves estimates that means-testing the Winter Fuel Payment will save the taxpayer £1.5 billion per year. The government has also highlighted the rise in the State Pension in April and the availability of discretionary help from local councils through the Household Support Fund.
Despite the increase in Pension Credit applications, only 42,500 households have been granted the benefit so far, out of an estimated 880,000 who qualify but have not applied. This has raised concerns about the welfare of the poorest pensioners who may struggle to heat their homes this winter.
Liberal Democrat MP Daisy Cooper criticized the government for failing to protect pensioners and called for the reversal of the cuts to the Winter Fuel Payment. Minister for Pensions Emma Reynolds urged eligible pensioners to apply for Pension Credit before the December deadline to receive the Winter Fuel Payment.
Overall, the surge in Pension Credit applications has highlighted the challenges faced by pensioners in accessing vital benefits and the need for more support to ensure that all eligible individuals receive the assistance they need.
