DWP urges pension credit sign-up ahead of looming deadline

The government is urging people to sign up for pension credit as the deadline to receive the winter fuel payment nears.

In the summer, the new Labour government controversially cut winter fuel payments for millions of pensioners, but said those claiming pension credit would continue to be eligible.

The decision sparked a backlash from unions and charities but in response, the government said it would encourage more pensioners to apply for the benefit, which has had a historically low take-up.

The government also said most pensioners would see little impact to their personal finances because of increases to the state pension.

Figures quietly released by the Department for Work and Pensions (DWP) in September revealed roughly 780,000 pensioners who are eligible could still miss out on the payment.

What is pension credit?

Pension Credit is a benefit that tops up your weekly income to £218.15 if you’re single, or your joint weekly income to £332.95 if you have a partner.

If your income is higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

It also gives you a range of access to other benefits like the winter fuel payment, a free TV licence for the over-75s, council tax discounts and some health benefits like discounts on glasses.

The winter fuel payment alone can be worth as much as £300.

Why do I need to sign up?

With the changes to the winter fuel payment signing up for pension credit is more important than ever.

The government did increase the annual pension by 4.1% during the budget, which the government says will make up for the difference but many pensioners struggling to make ends meet will find this as little comfort.

Over a third of pensioners who qualify for the benefit have not applied for it, meaning the government sets aside an extra £1.5bn to pay for it each year that is not used.

The deadline to apply for pension credit and receive this year’s winter fuel payment is 21 December.

You can apply online with the information you need available on the gov.uk website. You can also apply by phone on 0800 99 1234 or by post.

Caroline Abrahams CBE, Charity Director at Age UK Told Yahoo News UK: “Pension Credit is the main pensioner benefit that also qualifies people for a Winter Fuel Payment, so we really do urge anyone who is feeling the pinch to come forward and check if they’re eligible for it."

Concerns over low take-up

Up to 760,000 families who were entitled to receive pension credit did not claim it in the financial year ending in 2023, according to DWP figures – around 34% of the total who qualify for it.

For years, the government has struggled with improving take-up, as many myths around the benefit exist, and many pensioners have had difficulty with to doing things mostly online.

The government faces an uphill battle to tackle the myths that prevent people from coming forward and claiming. These include thinking you can’t claim pension credit if you have savings or are a homeowner.

The government has said it will continue to try and reach more pensioners and inform them that they qualify for the benefit.

Claims for pension credit have shown signs of a jump recently, likely in response to the winter fuel payment changes.

Figures released in September showed a rise in pension credit claims in the weeks after the government changed the policy, with more than 40,000 applications this financial year.

Age UK's Abrahams said: "We hope the recent spotlight on Pension Credit will encourage anyone with an older person in their lives to strike up a conversation about the cost of bills and mention this extra help that might help them to cope and stay warm this winter, if they put in a claim and it's successful."

Last month, she was was critical of the government's plan to drive up recruitment. Speaking in August, she said "We do not believe it will not be enough to achieve the dramatic increase in pension credit take up that's needed, in the short time available for pensioners to secure their entitlement to winter fuel payment before the weather chills.

She added: "Despite numerous campaigns to drive the take-up of pension credit over the years, only 63% claim it and the figure has never gone above 66% in the last decade.

"There is a £1.7bn pot of money waiting for those older people who are entitled to it, and it could make a big difference to their quality of life."

Am I eligible?

The main qualifier to apply for pension credit is that you must be over state pension age, which is currently 66.

Your weekly income will also need to be below the threshold required to receive the top up in the first place.

You are automatically eligible for pension credit if you and your partner, if applicable, have both reached the state pension age and one of you received housing benefit.

You can get pension credit even if you have other income outside of the state pension, have any savings or own your own home.

Applications for pension credit can be made four months before you reach the state pension age.

Read more

• Union looking to challenge abolition of Winter Fuel Payment (Manchester Evening News)

• Fraudsters taking advantage of worries over changes to winter fuel payments (South West Argus)

• Charity says all money raised will now have to cover Winter Fuel gap (Wales Online)