A record number of Pension Credit claims have been processed this year, with over 50,000 applications handled since July, according to newly released figures from the Department for Work and Pensions (DWP).
The surge in applications follows recent policy changes and increased awareness efforts, yet many pensioners remain unaware of their eligibility.
As reported by Manchester Evening News, despite this rise, hundreds of thousands of eligible pensioners may still not be claiming the benefit, potentially missing out on over £4,000 per year in financial support.
Record Surge in Pension Credit Applications
The latest DWP data shows that 117,800 applications have been awarded since last autumn—an increase of 64% compared to the same period last year. This marks the highest number of successful claims since records began in 2020.
The rise in applications follows the government’s decision to link Winter Fuel Payments to means-tested benefits, such as Pension Credit. This policy change encouraged many low-income pensioners to apply, contributing to a total of 300,000 Pension Credit applications in the current financial year.
To manage the surge in demand, the DWP recruited 500 additional staff, effectively doubling the number of processed claims between July and February and reducing backlogs. Between July and February alone, the department cleared 232,000 applications, a 92% increase compared to the previous period. However, 33,700 applications remain outstanding.
Hundreds of Thousands May Still Be Eligible
Despite the increase in applications, estimates from the DWP suggest that around 800,000 pensioners in Britain were eligible for Pension Credit last year. This means that even with the recent rise in claims, a significant number of pensioners who qualify for the benefit may still not be receiving it.
According to the DWP, Pension Credit provides essential financial support, including help with housing costs, council tax, and winter fuel payments. Additionally, recipients gain access to other discounts and financial assistance, making it a crucial lifeline for many low-income pensioners.
With the State Pension set to rise by up to £1,900 under the government’s Triple Lock policy, financial assistance remains a key concern for pensioners on low incomes.
Concerns Over Unsuccessful Applications
While the increase in successful claims is positive, 114,500 applications were rejected, representing a success rate of just 51%.
Joanna Elson, chief executive of Independent Age, expressed concern that many pensioners who applied in hope of additional financial support were deemed ineligible by only a small margin.
“This represents a success rate of 51%. Many people living on a low income applied in hope but found out they were just a few pounds above the Pension Credit threshold, meaning they also lost access to the Winter Fuel Payment,”- Elson said.
She added that many older people are struggling financially, with some cutting back on meals or heating to manage costs.
Independent Age’s helpline received thousands of calls from pensioners looking for financial support, many of whom reported having to go to bed in winter clothing or limit themselves to one meal a day.
“The influx of both successful and unsuccessful applications clearly illustrates that many older people were concerned about not having enough money to get through the winter,” she added.
The link between Pension Credit and Winter Fuel Payments has been criticised as leaving many ineligible pensioners without crucial winter support.
Calls for Further Action
The government has committed to increasing awareness of Pension Credit through campaigns and outreach efforts. Secretary of State for Work and Pensions, Liz Kendall, emphasised the importance of ensuring that all eligible pensioners receive the support they need.
“We are absolutely committed to ensuring every pensioner is supported in their retirement—whether through our ongoing Pension Credit campaign, extending the Household Support Fund, or our commitment to the Triple Lock on the State Pension,” Kendall stated.
The government is also considering new ways to increase take-up. One approach involves writing to pensioners who claim Housing Benefit and appear eligible for Pension Credit, ensuring they are informed about their potential entitlement.
Additionally, the government is working in collaboration with HMRC to analyse income data, helping to identify pensioners who may qualify but have not yet applied.
Finally, efforts to expand outreach initiatives are being explored to further encourage applications and increase awareness.
How to Apply for Pension Credit and What You Need to Know
Pension Credit applications can be backdated for up to three months, meaning eligible pensioners can still claim payments they may have missed. Those who qualify may also receive additional financial help with rent, council tax, and energy bills.
Applications can be made through the Gov.uk website via an online application, by calling the Pension Credit helpline at 0800 99 1234, or by submitting a paper application form.
To apply, claimants need to provide their National Insurance number, along with information about their income, savings, and investments. They must also supply their bank or building society details and financial records for the date they wish to backdate their claim.
The DWP reports that the online application process takes approximately 16 minutes to complete, with 90% of new claimants using the digital system.
