Pension Credit claims more than double in wake of Winter Fuel Payment shake-up

The Winter Gas Fee axe for anybody not in receipt of advantages has spurred hundreds of additional Pension Credit score claims, the Division for Work and Pensions (DWP) revealed.

The DWP sometimes acquired between 3,000 and 4,000 Pension Credit score claims on a weekly foundation, newest figures have revealed.

Nonetheless, from Monday 29 July – the date Labour introduced the Winter Gas Fee axe for tens of millions of pensioners – weekly claims spiked to between 8,000 and 9,000.

Certainly, within the 5 weeks because the Winter Gas Fee shake-up (as much as 26 August), the DWP acquired 38,500 Pension Credit score claims, greater than double (a 115% uplift) the 17,900 claims it acquired within the 5 weeks main as much as the announcement.

Winter Gas Fee axe

On the finish of July, as a part of Labour’s public spending audit Fixing the foundations, Chancellor Rachel Reeves confirmed the Authorities would tighten the eligibility standards for individuals who might obtain the Winter Gas Fee (also referred to as the WFP).

To be able to fill the quoted “£22bn public finance black gap”, the up-to-£300 cost this winter would solely be made to these in receipt of Pension Credit score, Common Credit score, Revenue Assist, income-related Employment or Assist Allowance, or Jobseeker’s Allowance.

There was uproar from charities and organisations, who urged 10 million folks – together with two million who’re financially struggling – could be excluded from the previously common scheme that helps older folks with heating payments.

However on the time, Steve Webb, associate at LCP and former pensions minister, urged the overhaul might encourage extra folks to say Pension Credit score, much like when the free BBC TV licence for all over-75s was restricted to simply these on the profit. Webb highlighted that this led to a surge in functions for Pension Credit score.

And Rachel Vahey, head of public coverage at AJ Bell, stated the Authorities’s “shock choice” to axe the WFP has prompted the UK’s pensioners to place in claims for Pension Credit score advantages.

Vahey stated: “This reveals the UK’s pensioners are appearing quick. Earlier Authorities estimates recommend simply six in 10 people who find themselves eligible for Pension Credit score make an utility, doubtlessly costing these on the bottom incomes hundreds of kilos in misplaced revenue.

“These speeding to fill within the varieties will probably be wanting to maintain a maintain of the £300 WFP, however might additionally entry different beneficial advantages, together with dental remedy and free TV licences. However there are nonetheless too many pensioners doubtlessly lacking out, and the Authorities must maintain banging the drum to induce these folks to say these beneficial advantages.”

She added that the Authorities is going through rising strain to “U-turn” on its controversial choice, with strain coming not solely from the opposition, however from unions and its personal backbenchers too.

In the meantime, tomorrow additionally sees the publication of the common earnings development figures for July, “which, with the current subdued inflation figures, will probably set the rise within the state pension subsequent yr beneath the triple lock assure”.

Pension Credit score defined

Pension Credit score is a key profit that always tends to go unclaimed by lower-income retirees.

In 2024/25, for those who’re over the state pension age (66), single and your revenue is lower than £218.15 per week, then Pension Credit score will high you as much as that quantity. For a pair, the mixed revenue determine is £332.95.

When it comes to what counts as revenue, it consists of your state pension, different pensions, employment or self-employment earnings and most social safety advantages. As with the state pension, it’s as much as you to say Pension Credit score.

Claiming Pension Credit score additionally acts as a gateway to different advantages, equivalent to assist with heating prices, housing profit, dental remedy and free TV licences (in case you are aged 75 or over).

“The choice to finish common Winter Gas Funds means it additionally turns into a gateway to [a] means-tested Winter Gas Fee,” Vahey added.