A recent update from the Department for Work and Pensions highlights a significant rise in Pension Credit applications over the past year. The benefit, designed to support low-income pensioners, has become closely tied to access to Winter Fuel Payments, influencing claim patterns nationwide. In the middle of the article, GB News reports that this administrative change has prompted tens of thousands of additional claims.
Official figures indicate shifts in both eligibility awareness and application behaviour. Further analysis outlines how these adjustments affect overall benefit spending, but many eligible individuals may still not be accessing the full support available.
Government policy shift leads to 44% rise in pension credit applications
A sharp increase in Pension Credit claims has followed a government decision to link Winter Fuel Payments to the benefit, prompting more than 98,000 additional applications between July 2024 and July 2025, according to the Department for Work and Pensions (DWP).
In total, 320,300 claims were submitted during that 12-month period—a 44% increase over the previous year. Of these, 181,100 were approved, up 46% year-on-year, bringing a major income boost to low-income retirees. The average value of a new award is estimated at £3,900 per year, adding approximately £223 million to the annual benefits bill, before considering related assistance such as council tax support.
The change in uptake came after the government initially announced in 2024 that Winter Fuel Payments would be restricted to those receiving Pension Credit, effectively excluding many pensioners unless they claimed the benefit.
Lower-Than-Expected Public Savings Following Policy Reversal
The original policy was expected to reduce spending on fuel payments by £1.5 billion per year, by narrowing eligibility to the most financially vulnerable. But in June 2025, the government reversed part of the decision, reinstating fuel payments for pensioner households earning less than £35,000 annually.
This partial U-turn reduced projected savings to £450 million. Once the added costs of increased Pension Credit uptake are included, the net saving falls to around £227 million, equivalent to just £1 in every £6 of the original £1.5 billion target.
Hundreds of Thousands of Eligible Households Still Not Claiming
Despite the rise in applications, a large number of pensioners still do not receive the Pension Credit they may be entitled to. According to Stephen Lowe, group communications director at retirement specialist Just Group:
“This remains a drop in the context of the estimated 700,000 families eligible for Pension Credit but not claiming it.
Many people may simply be unaware of the benefit, not know how to claim, or assume they are not eligible if they own their own home. This year’s research among people over 66 found that four in ten homeowners and one in seven renters had never checked their benefit entitlement.”
Mr. Lowe added:
“With the link between Pension Credit and Winter Fuel Payments, it is vital that pensioners do not miss out.
A range of free resources, including government benefit calculators and advice from local councils or charities, can help people ensure they are claiming everything they are entitled to.
For more information or to check eligibility, visit the government website or contact the Pension Service helpline at 0800 99 1234.”
What Pension Credit Provides and How It Helps With Fuel Costs
Pension Credit is an income-related benefit available to people over State Pension age living in England, Scotland, or Wales. It consists of two main components. The first is Guarantee Credit, which ensures that weekly income is topped up to a minimum of £227.10 for single pensioners and £346.60 for couples.
The second is Savings Credit, which is only available to those who reached pension age before 6 April 2016 and provides up to £17.30 per week for individuals and £19.36 for couples, rewarding those who have saved modestly for retirement.
Additional amounts may also be granted to individuals with disabilities, those caring for others, pensioners with children or dependent young people, and those facing housing-related expenses such as ground rent or service charges.
Claiming Pension Credit may also open the door to other financial support. This includes assistance with housing costs, support for mortgage interest, reduced council tax, help with NHS charges, and a free television licence for individuals aged 75 or over. Importantly, it remains a qualifying condition for receiving Winter Fuel Payments under current policy.
Eligibility Rules and How to Apply
Eligibility is assessed based on income and savings, and joint applications are required for those living with a partner. All forms of state pensions, private pensions, employment income, and most social security benefits are counted as income, although specific payments such as Attendance Allowance, Disability Living Allowance, and Child Benefit are excluded from the calculation.
Savings under £10,000 are disregarded, while amounts above this threshold are taken into account at a notional rate.
Applications for Pension Credit can be submitted online, by phone, or through the post. They may be submitted up to four months before reaching State Pension age, and claims can be backdated by up to three months if eligibility conditions are met throughout that period.
Applicants should prepare details about their income, assets, National Insurance number, and banking information. Assistance with the application process is available from organisations such as Citizens Advice, Age UK, and local councils. The government website also offers third-party eligibility calculators to simplify the process.
