Pension credit applications soar but approvals remain low

Claims for pension credit have soared by almost 150% since the UK Government announced plans to means test the winter fuel payment, figures show.

But just 42,500 applications have been approved over the same period – less than 5% of the 880,000 people the Government said were missing out on the benefit in July.

Some 150,000 applications for pension credit have been submitted in the 16 weeks since July 29, when Chancellor Rachel Reeves announced only those receiving the benefit would be eligible for winter fuel payments.

‘Black hole’

Ms Reeves said the move would save around £1.5 billion and was needed to help fill a £22 billion “black hole” in the public finances that Labour claims was left by the previous Conservative government.

The increase represents a 145% rise in claims compared with the 16 weeks before the Chancellor’s announcement.

But the number of approvals has risen by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100.

Cold snap

The figures come as the UK endures a cold snap, with the Met Office having issuing cold health warnings for northern England and the Midlands on Tuesday.

The Government continues to urge pensioners to check if they are eligible for pension credit.

Those who apply before December 21 will receive backdated payments of both pension credit and the winter fuel allowance, and the Department for Work and Pensions has deployed 500 extra staff to handle claims for the benefit.

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.”