The rejection rate for pension credit claims is just over 50 percent, but older people are urged not to be deterred if they believe they are eligible for the benefits.
You can still receive this year’s winter fuel payment, worth between £100 and £300, if you make a claim before the closing date of Saturday 21 December and your application is ultimately approved.
Pension Credit increases weekly income to at least €218.15 for singles and €332.95 for couples, and gives you access to lots of extra help paying bills.
People with disabilities and informal caregivers can have a higher income and still qualify for a pension credit.
Our pension columnist Steve Webb explains the rules of the ‘serious disability premium’ and the ‘care provider premium’ here.
The completely new The state pension will increase from £221.20 to £230.25 per week next April, increasing it to almost £12,000 a year under the triple lock.
> Apply for pension credit: Below you can read how you can supplement your weekly income
Winter fuel payments: The government announced last summer that a means test would be implemented in the future, sparking outrage
Around 50.3 per cent or 92,000 of pension credit applications processed between April and December this year were refused, according to new Freedom of Information data from the Department for Work and Pensions, obtained by financial firm Quilter.
During that period, 91,000 pension credit applications were approved. In the full year from April 2023 to March 2024, 112,000 claims were denied and 134,000 were granted, a denial rate of 45.5 percent.
The government announced in the summer that winter fuel payments would be means tested in future, sparking outrage from charities and campaigners for older people.
It recently emerged that applications for pension credits increased by 145 per cent following Chancellor Rachel Reeves’ statement.
Today the Government told This is Money that it has around 500 additional staff processing claims, and has seen a 51 per cent increase in the number of claims processed since the Chancellor’s announcement (see her statement below).
Jon Greer, head of pensions policy at Quilter, said: ‘Many more people than usual have applied for a pension credit following the news that winter fuel payments are now only available to those receiving the credit.
‘Unfortunately, many of these applicants may be just above the pension credit threshold, making them ineligible despite not being wealthy.
‘It may also be due to incorrect or incomplete information on the forms. The rapid abolition of the winter fuel payment by Labor has resulted in the Department for Work and Pensions experiencing a surge in pension claim applications within a short space of time.
“This influx includes people who previously did not know they were eligible.”
Greer says that as the last date to make a retroactive claim for a pension credit to receive the Winter Fuel Payment is next Saturday, it is crucial that low-income pensioners check their eligibility.
While a significant proportion of applicants will not receive a pension, this should not deter people from applying if they think they are eligible, he adds.
Successor Brian Cox is currently leading a celebrity campaign urging retirees to make a claim.
He is joined by film and TV actor Jane Asher and Sue Holderness, who played Marlene in the sitcom Only Fools and Horses, launched by the charity Independent Age.
Celebrity campaign: From left to right, Sue Holderness, Jane Asher and Brian Cox urge older people to check if they can claim a pension credit
How to apply for pension credit and where to get help with claims
If you are elderly and not wealthy, your weekly income will be supplemented with a pension credit of up to at least £218.15 for singles and £332.95 for couples.
On average it is worth around £4,000 a year on its own, but a pension credit also opens the door to lots of extra help with household bills.
You could get thousands of pounds on top, including help with housing costs, heating, council tax, TV licenses if you’re over 75, and other bills.
Learn more about pension credit here and about the rules about who qualifies here.
You can register by telephone at 0800 99 1234claim pension credit online or receive a form to do this by post.
A friend or family member can submit an application on behalf of an older person.
In Scotland, a new winter heating benefit at retirement age will eventually replace the winter fuel payment.
But for this winter, eligible people over state pension age will receive a benefit in line with the Winter Fuel Payment, and this will be means tested. Bill here if you live in Scotland And here for Northern Ireland.
Age UK staff provide assistance with applications. Any senior struggling with bills, or friends and family concerned about it, can call 0800 169 6565.
STEVE WEBB ANSWERS YOUR PENSION QUESTIONS
This line is open every day of the year from 8am to 7pm, or you can drop by Age UK’s help page here.
It also has a free, anonymous benefits calculator who can provide an estimate of what you may be entitled to if you want to know this information privately.
Age UK notes that the Domestic Support Fund has been expanded to help households struggling with bills and essential costs during the winter.
Money needs to be set aside specifically for the elderly, so it says they should contact their local authority to see if they are entitled to support.
Independent Age, a charity focused on improving the lives of older people in financial difficulty, offers help through its freephone line 0800 319 6789.
The charity’s advisers carry out welfare checks to ensure callers have access to all available support, including pension credit and the winter fuel payment.
What does the government say?
‘More than a million retirees will continue to receive the Winter Fuel Payment, and our commitment to boosting the take-up of pension credits has resulted in applications more than doubling, with over 40,000 retirees now receiving it, as well as the Winter Fuel Payment.’ , says a spokesperson.
‘We have deployed additional staff to support the processing of applications, increasing the number of claims processed by 51 per cent since the Chancellor’s announcement.
‘Many others will also benefit from the £150 Warm Home Discount and Cold Weather Payments this winter, while our extension of the Household Support Fund will help with the costs of food, heating and bills.’
The Government is urging anyone who thinks they are entitled to a pension credit to check now as all eligible claims can be made retrospectively and anyone who makes a successful claim will receive their payment.
It has approximately 500 additional workforce processing requests.
Disabled pensioners receive additional benefits such as attendance allowance, disability allowance and personal independence allowance, and may also be entitled to pension credit depending on their circumstances.
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