Rachel Reeves has said the winter fuel payment axe was necessary to fill ‘black hole’ (Image: Getty)
Claims for pension credit have soared by almost 150% since the Government announced plans to means-test the , figures show.
But just 42,500 applications have been approved over the same period – less than 5% of the 880,000 people the Government said were missing out on the benefit in July.
Some 150,000 applications for pension credit have been submitted in the 16 weeks since July 29, when Chancellor Rachel Reeves announced only those receiving the benefit would be eligible for winter fuel payments.
Ms Reeves said the move would save around £1.5 billion and was needed to help fill a £22 billion “black hole” in the public finances that Labour claims was left by the previous Conservative government.
The increase represents a 145% rise in claims compared with the 16 weeks before the Chancellor’s announcement.
But the number of approvals rose by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100.
Age UK said it is “a massive disappointment” that so many pensioners are having their claims turned down, adding the figures show the Government is “struggling to keep up” with the number of applications.
Caroline Abrahams, charity director at Age UK, said: “The system was not designed to deal with so many applications all at once – a situation which is a direct result of the Government’s disastrous decision to severely ration the with little notice.
“There’s still time for the Treasury to soften the blow on pensioners living on low and modest incomes before the worst consequences of its policy change play out this winter, but only just.”
Downing Street defended its efforts to encourage take-up of pension credit, with the Prime Minister’s official spokesman saying: “We’re working hard to ensure as many pensioners as possible take up the support they’re entitled to.”
The figures come as Britain endures a cold snap, with the having issued cold health warnings for northern England and the Midlands on Tuesday.
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The Government continues to urge pensioners to check if they are eligible for pension credit.
Those who apply before December 21 will receive backdated payments of both pension credit and the winter fuel allowance, and the Department for Work and Pensions has deployed 500 extra staff to handle claims for the benefit.
Pensions minister Emma Reynolds said: “We’re pleased to see more pensioners are now receiving pension credit and our staff are processing claims as quickly as possible.
“With 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 .”
Since the Chancellor’s announcement, the Government has spent around £250,000 on advertising relating to pension credit, a freedom of information request by investment managers Quilter Cheviot has found.
Rosie Hooper, a chartered financial planner at the company, said the figure is “surprising… given the importance of reaching those in need”.
Shadow work and pensions secretary Helen Whately said: “The Government has said publicly that it wants everyone eligible for pension credit to sign up. But Labour knew all along that wouldn’t happen.
“The figures out today show us that three-quarters of a million of the poorest pensioners are likely to miss out on winter fuel payments this winter.
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“This is the stark reality of Labour’s political choice to cut the . Pensioners are asking – is this Government choosing to be this cruel or are they just incompetent?”
Liberal Democrat Treasury spokeswoman said the figures are a “damning indictment of the Government’s failure to protect pensioners this winter”.
She said: “Millions of vulnerable pensioners are still set to lose their just as the cold weather bites.
“Ministers rushed through these unfair changes and now vulnerable pensioners are set to pay the price.
“We are now reaching the point of no return for the Government to recognise their mistake, scrap this unfair cut and avoid older people being forced to choose between heating and eating this winter.”