Increased Pension Credit Applications See High Rejection Rates

Applications for pension credit, a benefit enabling low-income pensioners to also receive winter fuel payments, have surged since the government unveiled its cost-cutting initiatives. Chancellor Rachel Reeves has eliminated fuel payments for 10 million pensioners, citing the need to address what she described as a “£22bn black hole in the public finances.” According to the Department for Work and Pensions (DWP), this decision, announced in July, has resulted in 150,000 pension credit applications being submitted since then. However, only 42,500 of these have been successful, with thousands rejected and others still awaiting a determination. Most individuals will qualify for the new, means-tested winter fuel payment only if they have first registered for pension credit. In the 16 weeks following the Chancellor’s announcement on July 29, approximately 150,000 applications for pension credit were submitted. This marked a 145% increase compared to the preceding 16 weeks. Nevertheless, the number of people granted pension credit rose by only 17% over the same period. The high volume of rejections could be attributed to applicants failing to meet the eligibility criteria or incorrectly completing the 24-page, 223-question form. The volume of new applications represents a small fraction of the estimated 880,000 pensioners who were eligible for the benefit but had not yet claimed it. Those who apply before December 21 will receive backdated payments for both pension credit and the winter fuel allowance. The DWP has deployed 500 additional staff members to process claims for the benefit. Pensions minister Emma Reynolds commented: “We’re pleased to see more pensioners are now receiving pension credit and our staff are processing claims as quickly as possible.” She added, “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.” Conversely, campaigners and opposition parties have criticized the delays. The government’s own data suggests a typical 10-week waiting period between an application’s submission and a final decision. Liberal Democrat Treasury spokesperson Daisy Cooper stated that the figures were a “damning indictment of the government’s failure to protect pensioners this winter,” adding that “Millions of vulnerable pensioners are still set to lose their winter fuel payment just as the cold weather bites.” Shadow work and pensions secretary Helen Whately remarked that the “stark reality” was that hundreds of thousands of eligible pensioners would miss out. The revised winter fuel payment policy continues to face scrutiny. The Unite union is proceeding with legal action aimed at overturning it. In Scotland, ministers have announced additional measures to assist those who are set to be affected. An estimated 880,000 low-income pensioner households eligible for pension credit are currently not claiming it. The government indicates that it is worth an average of £3,900 annually and that claiming it can qualify individuals for other financial support, such as winter fuel payments. Eligibility for pension credit can be checked via the government’s online calculator. Information on how to make a claim is also available. A phone line, 0800 99 1234, is also accessible on weekdays. An independent, government-backed website, MoneyHelper, provides a guide to benefits, eligibility, and what to do if issues arise. Benefit calculators are also operated by Policy in Practice, and the charities Entitledto and Turn2us. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.