State pensioners issued 'worst' update after DWP decision means they lose £3,900

A "disastrous" decision from the new Labour Party government and the Department for Work and Pensions ( DWP ) could mean state pensioners lose out on £3,900 worth of Pension Credit. Claims for pension credit have soared by almost 150 per cent since the Labour Party government announced plans to means-test the winter fuel payment, figures show.

But just 42,500 applications have been approved over the same period – less than 5 per cent of the 880,000 people the Government said were missing out on the benefit in July. 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 winter fuel payment with little notice.

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“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.”

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. This is the stark reality of Labour’s political choice to cut the winter fuel payment. Pensioners are asking – is this Government choosing to be this cruel or are they just incompetent?”