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The rejection rate for pension credit applications is just over 50 per cent, but older people are urged not to be deterred if they believe they qualify for the payments.
You can still receive this year’s winter fuel payment, which is worth between £100 and £300, if you apply before the deadline this Saturday, December 21 and your application is ultimately approved.
The pension credit increases weekly earnings to a minimum of £218.15 for singles and £332.95 for couples, and gives you access to plenty of extra help with bills.
Disabled people and their carers can have higher incomes and still be entitled to a pension credit.
Our retirement columnist Steve Webb explains the ‘severe disability premium’ and ‘carer’s premium’ rules here.
the new complete The state pension will increase from £221.20 to £230.25 a week. next April, increasing it to almost £12,000 a year under the triple lock.
> Apply for pension credit – find out how to top up your weekly income below
Winter fuel payments: The government announced last summer that they would be means-tested in future, sparking protests.
Around 50.3 per cent or 92,000 pension credit applications processed between April and December this year were rejected, according to new Freedom of Information data from the Department for Work and Pensions obtained by financial firm Quilter.
In that period, 91,000 applications for pension credits were approved. In the entire year from April 2023 to March 2024, 112,000 applications were rejected and 134,000 were granted, a rejection rate of 45.5 percent.
The Government announced in the summer that future winter fuel payments would be means-tested, sparking protests from charities and seniors campaigners.
It recently revealed that the number of pension credit applications 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 applications and has seen a 51 per cent increase in the number of applications approved since the Chancellor’s announcement (see statement below).
Jon Greer, head of retirement policy at Quilter, says: ‘Many more people than usual have applied for a pension credit due to the news that winter fuel payments are now only available to those receiving the credit.
‘Unfortunately, many of these applicants could be just above the threshold for the pension credit, making them ineligible despite not being wealthy.
‘It can also be due to incorrect or incomplete information on the forms. The rapid removal of workers’ winter fuel payment has caused the Department for Work and Pensions to face a surge in pension claims in a short period.
“This influx includes people who were previously unaware of their eligibility.”
Greer says that with the last date to submit a retrospective pension credit claim to receive the Winter Fuel Payment is next Saturday, it is vitally important for low-income pensioners to check their eligibility.
Although a significant proportion of applicants are denied pension credit, this should not stop people from applying if they believe they are eligible, it adds.
Probate star Brian Cox is currently leading a celebrity campaign urging struggling pensioners to claim.
He will be joined by film and television actress Jane Asher and Sue Holderness, who played Marlene in the comedy Only Fools and Horses, in an initiative by the charity Independent Age.
Celebrity campaign: From left, Sue Holderness, Jane Asher and Brian Cox urge older people to check if they can claim pension credit
How to apply for pension credit and where to get help with claims
If you are an older person and not well off, pension credit tops up your weekly earnings up to a minimum of £218.15 for singles and £332.95 for couples.
On average, it’s worth around £4,000 a year on its own, but pension credit also opens the door to lots of extra help with household bills.
Plus you could win thousands of pounds 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 him rules about who is eligible here.
You can apply by phone at 0800 99 1234say online pension credit either Get a form to do it by mail.
A friend or family member can apply on behalf of an older person.
In Scotland, a new winter heating payment for retirement age will eventually replace the winter fuel payment.
But for this winter, eligible people over state pension age will receive a payment in line with the Winter Fuel Payment, and this will be means-tested. Check here if you live in Scotland and here for Northern Ireland.
Age UK staff provide help with applications. Any senior who is struggling with bills, or friends and family who are worried about them, can call 0800 169 6565.
STEVE WEBB ANSWERS YOUR QUESTIONS ABOUT PENSIONS
This line is open every day of the year from 8 a.m. to 7 p.m., or you can visit Age UK help page here.
It also has a free anonymous profit calculator which can provide an estimate of what you might be entitled to if you wish to know this information privately.
Age UK points out that the Household support fund has been expanded to help struggling households with bills and essential costs during the winter.
The money should be reserved specifically for older people, so they should contact their local council to see if they are entitled to any support.
Independent Age, a charity focused on improving the lives of older people in financial difficulty, offers help on 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 winter fuel payment.
What does the Government say?
“More than a million pensioners will continue to receive the Winter Fuel Payment, and our drive to increase the use of pension credit has seen applications double and more than 40,000 more pensioners now receive it, in addition to the Winter Fuel Payment. Winter,” says a spokesperson.
‘We have deployed additional staff to support the processing of claims, seeing a 51 per cent increase in the number of claims approved 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 cost of food, heating and bills.”
The Government is urging anyone who believes they may be entitled to pension credit to check now, as all eligible claims can be backdated and anyone who makes a successful claim will receive their payment.
It has about 500 additional employees processing applications.
Disabled pensioners receive additional benefits such as attendance allowance, disabled living allowance and personal independence payment, and may also be entitled to a pension credit depending on their circumstances.
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