Pension Credit claims have risen by 145 per cent since the announcement of means-testing for the winter fuel payment.
About 150,000 Pension Credit claims were received by the DWP in the 16 weeks leading up to November 11, 2024, since the announcement on July 29. This is a 145 per cent increase from the roughly 61,300 claims received in the preceding 16 weeks.
Additionally, there has been a 51 per cent increase in approved claims (from 63,100 to 95,300) and a 17 per cent increase in awarded claims (from 36,400 to 42,500).
But it is still possible that many retirees who are eligible for this benefit will not receive pension credit or other benefits that are associated with it.
Just Group group communications director at retirement specialist Stephen Lowe says: “The spotlight on the take up of Pension Credit is harsher since the Government limited the winter fuel payments to people who are in receipt of Pension Credit or certain other means-tested benefits.
“For many pensioners the winter fuel payment gives them the confidence to keep their homes warm during the colder months knowing they can pay the bill. With around 700,000 families eligible for Pension Credit but failing to claim it, we may be looking at more than a million pensioners unnecessarily afraid to put on the heating this winter.
“They may be failing to claim for a number of reasons – they may simply be unaware of the benefit, assume they are not eligible or not know how to claim. Our own research among over-65s found that nearly four in 10 (38 per cent) homeowners and one in seven (15 per cent) of renters had never checked their benefit entitlement.
“The Government’s Awareness Drive is clearly having some positive impact with claims volumes increasing noticeably, but it is important that targeted help reaches those who need it most and there are a range of free resources to help people and families check eligibility if they suspect elderly relatives may be missing out on valuable support.
“The government website has links to useful third-party calculators while other good sources are Citizens Advice, local councils and charities.”
Standard Life retirement savings director Mike Ambery saying: “New DWP statistics show a welcome significant uptick in Pension Credit applications and new recipients following the July announcement that the Winter Fuel Payment would be means tested, and dependent on receipt of Pension Credit.
“However, the 42,500 additional recipients since the Chancellor’s announcement fall way short of hitting the 880,000 then estimated to be eligible but not receiving it. Pension Credit is a vital lifeline for people of State Pension age and on low incomes, and as well as being itself worth around £3,900 per year on average it acts as a gateway to help in addition to the Winter Fuel Payment, like help with rent and council tax.
“Many people mistakenly believe that if they have some savings or their own home they won’t be entitled to Pension Credit, with others worried about a perceived stigma attached to claiming. However, eligibility is wider than often assumed and Pension Credit can be a real lifeline when times are tough. We would urge people to check eligibility with a benefits adviser or the Government’s online Pension Credit calculator and make sure they are getting all the help available.”