The recent surge in Pension Credit applications has sparked mixed reactions among pensioners and campaigners alike. After the government’s call to apply for Pension Credit in order to secure the Winter Fuel Payment, hundreds of thousands of pensioners have responded, leading to a 145% increase in applications. However, despite this response, campaigners have expressed disappointment over the significant number of rejections by the Department for Work and Pensions (DWP).
The DWP’s latest data shows that there is a substantial backlog of applications, with 53,400 individuals still waiting for a decision. Out of the 161,800 applications processed, around half were rejected, meaning that 81,500 pensioners will miss out on the Winter Fuel Payment this year. This rejection is primarily due to the applicants not meeting the Pension Credit maximum income threshold.
Chancellor Rachel Reeves believes that means-testing the Winter Fuel Payment could save taxpayers £1.5 billion annually. While the government is satisfied with the increase in Pension Credit beneficiaries, charities like Age UK are concerned about the number of older people being turned down for the benefit. The revelation that only 42,500 out of an estimated 880,000 eligible pensioners are currently benefiting from Pension Credit has raised alarms about the difficulties some pensioners may face in heating their homes this winter.
Liberal Democrat MP Daisy Cooper has criticized the government for failing to protect pensioners this winter, especially those who may have to choose between heating and eating. On the other hand, Minister for Pensions Emma Reynolds MP has urged eligible individuals to apply for Pension Credit to unlock various benefits, including the Winter Fuel Payment.
With the State Pension set to increase in April and additional assistance available through local councils and the Household Support Fund, pensioners are encouraged to check their eligibility for Pension Credit and apply before the deadline on 21 December. The government’s decision to link the Winter Fuel Payment to Pension Credit has stirred debate among policymakers and advocates, highlighting the importance of financial support for vulnerable older adults during the winter months.
