Processing times for pension credit claims reached a record 87 working days in December 2024, far exceeding the Department for Work and Pensions’ (DWP) 50-day target, according to figures obtained by financial adviser Quilter. This bottleneck coincided with a surge in applications triggered by recent changes to eligibility for the Winter Fuel Payment scheme.
The delays have raised concerns over the government’s ability to manage increased demand following the tightening of rules that restrict Winter Fuel Payment eligibility to pensioners receiving means-tested benefits such as pension credit.
The timing of the December backlog was particularly significant, as it was the last chance for pensioners to submit backdated claims to qualify for up to £300 in energy bill assistance.
Surge in Pension Credit Claims Challenges Processing Capacity
Between late July 2024 and February 2025, the DWP received approximately 235,000 new claims for pension credit, marking an 81 per cent increase compared to the same period the previous year, according to official DWP data.
This sharp rise followed government reforms that restricted Winter Fuel Payment eligibility to pensioners already receiving means-tested support, prompting many to apply for pension credit to maintain their access.
The DWP had maintained a relatively strong record in processing claims, with 77.7 per cent completed within 50 working days during the 2023/24 tax year. However, the unprecedented volume of applications in late 2024 has caused severe delays, with December’s processing time hitting 87 working days.
Quilter’s Jon Greer, head of retirement policy, described the situation as “too long, especially when low-income pensioners rely on this support to heat their homes during winter.”
Political and Public Backlash Over Changes to Winter Fuel Support
The reforms to the Winter Fuel Payment, which restrict eligibility based on receipt of means-tested benefits, sparked widespread public opposition.
Polling by YouGov cited by Quilter found that 59 per cent of the general public oppose the cuts, with opposition rising to 78 per cent among those aged 55 and over. The policy has proven deeply unpopular with older voters, a demographic that traditionally turns out in large numbers at elections.
Labour leader Keir Starmer signalled a policy reversal during Prime Minister’s Questions in early May, suggesting plans to broaden eligibility criteria following public backlash.
Meanwhile, government officials acknowledge the failure to prepare administrative systems for the surge in claims, leaving some vulnerable pensioners “left out in the cold,” according to Quilter.
Despite delays, Quilter encourages eligible pensioners to apply for pension credit, as it grants access to various benefits including council tax reductions and free TV licences for those over 75.
