The rejection rate for pension credit claims is just over 50 per cent, but older people are being urged not to be deterred if they believe they qualify for the payments.
You can still receive this year’s Winter Fuel Payment, which is worth from £100 to £300, if you claim by the cut-off date of this Saturday 21 December and your application is eventually approved.
Pension credit boosts weekly income to a minimum of £218.15 for single people and £332.95 for couples, and gains you access to a lot of additional help with bills.
Disabled people and carers can have a higher income and still qualify for pension credit.
Our retirement columnist Steve Webb explains the rules of the ‘severe disability premium’ and the ‘carers premium’ here.
The full new state pension will rise from £221.20 to £230.25 a week next April, boosting it to nearly £12,000 a year under the triple lock.
> Claiming pension credit: Find out how to top up your weekly income below
Winter Fuel Payments: The Government announced last summer they would be means-tested in future, sparking an outcry
Some 50.3 per cent or 92,000 of pension credit claims processed from April to December this year were refused, according to new Freedom of Information data from the Department for Work and Pensions obtained by financial firm Quilter.
In that period, 91,000 pension credit claims were approved. In the full year from April 2023 to March 2024, 112,000 claims were refused and 134,000 were awarded, a rejection rate of 45.5 per cent.
The Government announced in the summer that Winter Fuel Payments would be means-tested in future, sparking an outcry from charities and campaigners for the elderly.
It recently revealed the number of applications for pension credit jumped 145 per cent following the statement from Chancellor Rachel Reeves.
Today, the Government told This is Money that it has around 500 additional staff processing applications, and has seen a 51 per cent increase in the number of cleared claims since the Chancellor’s announcement – see its statement below.
Jon Greer, head of retirement policy at Quilter, says: ‘Many more people than usual have applied for pension credit due to the news that Winter Fuel Payments are now only available to those receiving the credit.
‘Unfortunately, many of these applicants might be just above the threshold for pension credit, making them ineligible despite not being wealthy.
‘It may also be down to incorrect or incomplete information on the forms. The rapid removal of the Winter Fuel Payment by Labour has resulted in the Department for Work and Pensions facing a surge in pension claim applications within a short period.
‘This influx includes people who were previously unaware of their eligibility.’
Greer says that as the last date for making a backdated claim for pension credit to receive the Winter Fuel Payment is this coming Saturday, it is vitally important pensioners on low incomes check their eligibility.
Although a significant proportion of claimants are being denied pension credit, this should not stop people applying if they think they are eligible, he adds.
Succession star Brian Cox is currently leading a celebrity campaign urging hard-up pensioners to claim.
He is being joined by film and TV actor Jane Asher and Sue Holderness, who played Marlene in sitcom Only Fools and Horses, in the initiative by charity Independent Age.
Celebrity campaign: From left, Sue Holderness, Jane Asher and Brian Cox urge older people to check if they can claim pension credit
How to apply for pension credit and where to get help with claims
If you are elderly and not well off, pension credit tops up weekly income to a minimum of £218.15 for single people and £332.95 for couples.
On average it is worth around £4,000 a year on its own, but pension credit also opens the door to a lot of additional help with household bills.
You can gain thousands of pounds on top including help with housing costs, heating, council tax, TV licences if you are over 75, and other bills.
Find out more about pension credit here and about the rules on who is eligible here.
You can apply yourself by phone on 0800 99 1234, claim pension credit online or get a form to do it by post.
A friend or family member can apply on behalf of an elderly person.
In Scotland, a new Pension Age Winter Heating Payment will eventually replace the Winter Fuel Payment.
But for this winter, people over state pension age who qualify will receive a payment in line with the Winter Fuel Payment, and this will be means-tested. Check here if you live in Scotland and here for Northern Ireland.
Age UK staff provide help with applications. Any older person struggling with bills, or friends and family who are concerned about them, can call 0800 169 6565.
STEVE WEBB ANSWERS YOUR PENSION QUESTIONS
This line is open every day of the year between 8am and 7pm, or you can visit Age UK’s help page here.
It also has a free, anonymous benefits calculator which can provide an estimate of what you could be entitled to if you want to find out this information privately.
Age UK notes that the Household Support Fund has been extended to help struggling households with bills and essential costs over winter.
Money should be specifically set aside for older people, so it says they should contact their local council to see if they’re entitled to any support.
Independent Age, a charity focused on improving the lives of older people in financial hardship, offers help on its free phoneline 0800 319 6789.
Advisers from the charity carry out welfare benefit checks to ensure callers are accessing all available support, including pension credit and the Winter Fuel Payment.
What does the Government say?
‘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,’ says a spokesperson.
‘We have deployed additional staff to support processing applications, seeing a 51 per cent 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.’
The Government is urging anyone who thinks they may be entitled to pension credit to check now, as all eligible claims can be backdated and anyone who makes a successful claim will receive their payment.
It has around 500 additional staff processing applications.
Disabled pensioners receive extra benefits such as Attendance Allowance, Disability Living Allowance and Personal Independence Payment, and may also be entitled to pension credit depending on their circumstances.
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