Pension Credit claims soar after Winter Fuel cut – but ‘worrying’ 96% surge in rejections

applications have rocketed by 145% since Chancellor made the Winter Fuel Payment benefit means-tested this year.

Pension Credit, worth an average of £3,900 a year, aims to top up low-income pensioners’ to give them a more reasonable standard of living.

A campaign was launched by the Government after the summer to raise awareness of the and boost applications, as it was estimated 800,000 pensioners were believed to be eligible for it but weren’t claiming.

Figures released today by the Department for Work and Pensions () show 81,000 successful applications have now been made for Pension Credit, of which 42,500 have come since the changes to the were announced on July 29.

While this presents as “good news”, successful applications only increased marginally following the eligibility criteria cuts.

More worryingly, unsuccessful applicants have surged by a staggering 96% since July, which charities indicate illustrates “a desperate picture” where people on low incomes are trying anything they can to find support.

Commenting on the data Morgan Vine, director of policy and influencing at Independent Age, said: “This is good news for those older people who are now receiving their entitlements, but this data shows that successful applications only increased by 17% between the 16 weeks before the announcement and the 16 week period after the announcement.

“It’s also worrying to see a 96% surge in unsuccessful applications from July, with 53,100 applicants not qualifying for the entitlement.

“This illustrates a desperate picture where people on low incomes are trying anything they can to see if there is support out there. Sadly, there is little hope of success for many, while people who are eligible may have to wait much longer than expected to be paid the money they’re entitled to.”

According to Independent Age, the Government confirmed that waiting times for Pension Credit decisions have recently doubled to 10 weeks.

Ms Vine said: “Our helpline has received many calls from older people who are frustrated and concerned about how long their application has been pending. In some cases, callers told us they have been waiting since May.

“This delay creates uncertainty that could increase the number of people making drastic and dangerous cutbacks. The people in later life we speak to have already been going to bed in hats and coats, washing in cold water and only heating one room.

“They urgently need reassurance from the UK Government that they will not be left out in the cold this winter.”

Ms Vine suggested that linking entitlements of and Pension Credit together so quickly was “misguided”, and far too many older people on a low income “will fall through the cracks”.

She added: “It’s clear from the influx of both successful and unsuccessful applications, that people in later life across the country are concerned about losing a vital lifeline.

“While we hope the increased rate in applications results in more people getting the Pension Credit they’re eligible for, we believe more time, and a strategic approach is needed.”

The ’s , an annual one-off payment worth up to £300 towards pensioner’s heating bills, was previously available to all state pensioners.

The Chancellor made the decision to means-test the benefit this year in an effort to fill an alleged £40billion shortfall in the nation’s finances. The change initially stripped 10 million pensioners of the support.

Pensioners can now only qualify for the if they claim certain benefits, such as Pension Credit.

Who is eligible for Pension Credit?

To claim, a person must live in England, Scotland or Wales and have reached the age (currently 66 and over). They or their partner must also be receiving housing benefits.

If this applies, the person must then work out their total weekly income. This should include the , other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.

Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:

• Adult Disability Payment
• Christmas Bonus
• Child Benefit
• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Social fund payments, such as the Winter Fuel Allowance
• Housing Benefit
• Council Tax Reduction.

People are most likely to be eligible if their total weekly income is roughly under £220.

However, if their income is higher, they might still be eligible, so it’s worth checking the Government just in case.

Tom Selby, director of public policy at AJ Bell, added: “For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over).”

The said it only takes 16 minutes on average to apply, and anyone who makes a successful claim for Pension Credit before December 21 will receive both backdated Pension Credit and a .

Minister for Pensions Emma Reynolds MP said: “We’re pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible.

“With the December 21 approaching, my message is clear: check if you are eligible for Pension Credit and if you are then apply, as it unlocks a range of benefits including the .”

To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online .