The DWP typically received between 3,000 and 4,000 Pension Credit claims on a weekly basis, latest figures have revealed.
However, from Monday 29 July – the date Labour announced the Winter Fuel Payment axe for millions of pensioners – weekly claims spiked to between 8,000 and 9,000.
Indeed, in the five weeks since the Winter Fuel Payment shake-up (up to 26 August), the DWP received 38,500 Pension Credit claims, more than double (a 115% uplift) the 17,900 claims it received in the five weeks leading up to the announcement.
Winter Fuel Payment axe
At the end of July, as part of Labour’s public spending audit Fixing the foundations, Chancellor Rachel Reeves confirmed the Government would tighten the eligibility criteria for those who could receive the Winter Fuel Payment (also known as the WFP).
In order to fill the quoted “£22bn public finance black hole”, the up-to-£300 payment this winter would only be made to those in receipt of Pension Credit, Universal Credit, Income Support, income-related Employment or Support Allowance, or Jobseeker’s Allowance.
There was uproar from charities and organisations, who suggested 10 million people – including two million who are financially struggling – would be excluded from the formerly universal scheme that helps older people with heating bills.
But at the time, Steve Webb, partner at LCP and former pensions minister, suggested the overhaul could encourage more people to claim Pension Credit, similar to when the free BBC TV licence for all over-75s was limited to just those on the benefit. Webb highlighted that this led to a surge in applications for Pension Credit.
And Rachel Vahey, head of public policy at AJ Bell, said the Government’s “shock decision” to axe the WFP has prompted the UK’s pensioners to put in claims for Pension Credit benefits.
Vahey said: “This shows the UK’s pensioners are acting fast. Previous Government estimates suggest just six in 10 people who are eligible for Pension Credit make an application, potentially costing those on the lowest incomes thousands of pounds in lost income.
“Those rushing to fill in the forms will be wanting to keep a hold of the £300 WFP, but could also access other valuable benefits, including dental treatment and free TV licences. But there are still too many pensioners potentially missing out, and the Government needs to keep banging the drum to urge these people to claim these valuable benefits.”
She added that the Government is facing increasing pressure to “U-turn” on its controversial decision, with pressure coming not only from the opposition, but from unions and its own backbenchers too.
Meanwhile, tomorrow also sees the publication of the average earnings growth figures for July, “which, with the recent subdued inflation figures, will likely set the increase in the state pension next year under the triple lock guarantee”.
Pension Credit explained
Pension Credit is a key benefit that often tends to go unclaimed by lower-income retirees.
In 2024/25, if you’re over the state pension age (66), single and your income is less than £218.15 per week, then Pension Credit will top you up to that amount. For a couple, the combined income figure is £332.95.
In terms of what counts as income, it includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it is up to you to claim Pension Credit.
Claiming Pension Credit also acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licences (if you are aged 75 or over).
“The decision to end universal Winter Fuel Payments means it also becomes a gateway to [a] means-tested Winter Fuel Payment,” Vahey added.
