Majority of pension credit claims processed in recent months denied, data shows

Just over half of pension credit claims processed in recent months were not awarded, according to UK 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).

Means tested

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.

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.”

‘Controversial’

Tom Selby, director of public policy at AJ Bell, said: “Chancellor Rachel Reeves’ controversial decision to means-test the winter fuel payment means it is more important than ever that low-income retirees claim pension credit this year.”

He added: “Even a claim for a small amount of Pension Credit top-up during the ‘qualifying week’ of September 16 to 22 should trigger a winter fuel payment worth up to £300.

“Because of the way the backdating rules work, the deadline for making a claim for this period is just a few days away on December 21.

“Alongside the income top-up and winter fuel payment, those in receipt of pension credit are also entitled a range of other valuable benefits, including help with heating costs, housing benefit, dental treatment and free TV licences (for people aged 75 or over).

“While the process of claiming pension credit can feel unfamiliar and intimidating, it is worth doing if you think you might qualify as you could boost your income by thousands of pounds.

“The DWP offers a useful online tool to check if you might qualify for pension credit before going through the application service, or you can contact the pension credit claim line to discuss your eligibility. Organisations like Citizens Advice and Age UK are also a great source of independent information and help.”

Additional staff

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.”

Around 500 additional staff have been deployed to support processing applications, the Government has said.

Disabled pensioners are supported by extra disability benefits and may also be entitled to pension credit, depending on their circumstances.