Pension credit surge as UK endures cold snap - but approvals remain low

Applications for pension credit have surged by nearly 150% following the Government's announcement to means-test the winter fuel payment, according to recent figures.

However, only 42,500 applications have been approved during this time – a figure that falls short of 5% of the 880,000 individuals the Government claimed were not receiving the benefit back in July.

Since July 29, when Chancellor Rachel Reeves declared that only those on pension credit would qualify for winter fuel payments, around 150,000 claims have been lodged over the subsequent 16 weeks.

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Ms Reeves stated that this policy change was expected to save approximately £1.5 billion and was necessary to address a £22 billion "black hole" in public finances, which Labour attributes to the previous Conservative government.

This surge in claims marks a 145% increase compared to the 16 weeks prior to the Chancellor’s announcement. Yet, approvals have only seen a 17% rise in the same timeframe, while rejections have nearly doubled from 27,100 to 53,100.

These statistics emerge as parts of Britain face a cold snap, with the Met Office issuing health warnings due to the cold for northern England and the Midlands this Tuesday.

The Government is actively encouraging pensioners to verify their eligibility for pension credit, highlighting that applications made before December 21 will be eligible for backdated payments of both pension credit and the winter fuel allowance.

To manage the influx of claims, the Department for Work and Pensions has introduced an additional 500 staff members to assist with the process.

Pensions Minister Emma Reynolds has stated: "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 winter fuel payment.

However, Daisy Cooper, the Liberal Democrat Treasury spokesperson, described the figures as 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 winter fuel payment 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."