Winter Fuel Payment crisis: Thousands of Britons lose £300 support as most Pension Credit claims rejected

More than half of Pension Credit claims processed between April and December 2024 were rejected. Figures obtained from the Department for Work and Pensions (DWP) through a Freedom of Information request by Quilter reveal that 92,000 claims were denied, while 91,000 were awarded during this period.

This comes as a blow to the thousands of pensioners hoping to make a successful claim for the “gateway benefit” in order to access the Winter Fuel Payment. Previously universal, the up to £300 in energy bill support was recently means-tested by the Labour Government.

This marks a shift from the previous year, when a higher number of claims were successful. Between April 2023 and March 2024, 134,000 claims were awarded compared to 112,000 that were rejected.

Pensioners have until December 21 to submit backdated claims for Pension Credit to receive this year’s Winter Fuel Payment. The deadline is particularly crucial as it affects eligibility for the winter fuel payment, which has recently been means-tested.

“With the last date for making a backdated claim for Pension Credit to receive the Winter Fuel Payment now just days away, it is vitally important that pensioners on low incomes check their eligibility,” said Jon Greer, head of retirement policy at Quilter.

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Even a small Pension Credit top-up during the qualifying week of September 16 to 22 could trigger a Winter Fuel Allowance worth hundreds of pounds. In July, Chancellor Rachel Reeves announced significant changes to the benefit as part of measures to address public finance concerns.

This change is expected to dramatically reduce the number of pensioners receiving the payment from 11.4 million to 1.5 million. Tom Selby, director of public policy at AJ Bell, called it a “controversial decision” to means-test the Winter Fuel Payment.

He noted that the policy move makes claiming Pension Credit more crucial than ever for low-income retirees. Despite the high rejection rate, Greer urged potential claimants not to be discouraged from applying.

“While this new data shows that a significant proportion of claimants are being denied Pension Credit this should not stop people applying if they think they might be eligible,” he said.

Pension Credit guarantees a weekly income of £218.15 for single people or £332.95 for those with partners. The benefit also provides access to additional support, including help with housing costs, council tax, and heating bills. Selby cited the importance of seeking help despite the application process feeling daunting.

“While the process of claiming pension credit can feel unfamiliar and intimidating, it is worth doing if you think you might qualify as you could boost your income by thousands of pounds,” he said.

A Government spokesperson defended the changes, stating: “Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has seen applications more than double with over 40,000 more pensioners now receiving it.”

The DWP offers an online tool to check eligibility, and organisations like Citizens Advice and Age UK can provide independent support. The government has deployed around 500 additional staff to help process pension credit applications.

This staffing boost has resulted in a 51 per cent increase in the number of cleared claims since the Chancellor’s announcement. Disabled pensioners receive additional support through disability benefits and may also be eligible for Pension Credit, depending on their circumstances.

The Government spokesperson highlighted that many will benefit from the £150 Warm Home Discount and cold weather payments this winter. The household support fund has also been extended to help with food, heating and bills costs.

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Fiona Peake, a personal finance expert at Ocean Finance, previously broke down the importance of claiming for Pension Credit.

She explained: “The cost of living crisis has hit older people hard. Aside from the immediate financial relief, claiming Pension Credit can help protect you against rising costs.

“With the energy price cap increasing once again at the start of January and food inflation remaining stubbornly high, claiming what you’re entitled to is a smart move. If you think you might qualify – or know someone who could – take five minutes to check.

“It’s also worth exploring other money-saving options, like reviewing energy bills, switching providers, or looking into budgeting tools to help make every penny count.”