Winter fuel payment claims skyrocket after Labour changes – but 50% of pensioners rejected

There are now 53,400 pensioners waiting for their claim to be processed

Around 150,000 people have applied for pension credit since the Chancellor announced the means testing of the winter fuel payment (Yui Mok/PA) (PA Wire)

Pensioners have been racing to secure the winter fuel payment, new statistics show, as the massive rise in the number of applications since Labour’s changes is revealed.

Since April 1, there have been 215,200 applications for Pension Credit, of which 161,800 have been processed, leaving a backlog of 53,400.

Following Rachel Reeves’ announcement in July, pensioners must be claiming the means-tested benefit to be sent the winter fuel payment worth £200-300. They have until 21 December to apply and still receive a backdated payment for 2024 (if successful).

The figures from the DWP show a marked increase in applications since the chancellor announced the changes, shooting up by 145 per cent with around 150,000 applications being made. The department says it has processed 51 per cent more claims in this time.

Chancellor Rachel Reeves (Ben Birchall/PA) (PA Wire)

However, over half of those applying for Pension Credit are being rejected, the figures show. Since April 1, 81,500 applicants have been unsuccessful – 500 more than were approved. This is an “astonishingly high” figure says Caroline Abrahams, charity director at Age UK.

“It’s a massive disappointment to see so many older people applying for Pension Credit and being turned down because they are ineligible,” she says.

“Because the process of applying for Pension Credit requires you to fill in a relatively comprehensive form you wouldn’t bother unless you really need the money, so these statistics also reflect the acute concern felt by many older people at the loss of their Winter Fuel Payment.

“There’s still time for the Treasury to soften the blow on pensioners living on low and modest incomes before the worst consequences of its policy change play out this winter, but only just.”

To be eligible for Pension Credit, you must be aged 66 and over and have an income of less than £218.15 a week (or £332.95 jointly for partners).

Around 150,000 people have applied for pension credit since the Chancellor announced the means testing of the winter fuel payment (Peter Byrne/PA) (PA Wire)

This means that any pensioner in receipt of the full rate of new State Pension (£221.20 a week) is ineligible. Those with an income just a few pounds higher than the eligible thresholds with also generally be ineligible.

Campaigners have said this threshold is too low, and will put two million vulnerable pensioners at risk of missing out. Labour now also faces legal action over the changes as Unite, the party’s biggest union backer, makes an application to the High Court.

Responding to the DWP figures Liberal Democrat Treasury spokesperson Daisy Cooper MP said: “These figures are a damning indictment of the government’s failure to protect pensioners this winter.

“Millions of vulnerable pensioners are still set to lose their Winter Fuel Payment just as the cold weather bites.

“We are now reaching the point of no return for the government to recognise their mistake, scrap this unfair cut and avoid older people being forced to choose between heating and eating this winter.”

Minister for pensions Emma Reynolds MP said: “We’re pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible.

“With the 21 December 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.”