Claims for pension credit have soared by almost 150% since the 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% 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.
The benefit was previously available to almost everyone in the UK born before September 25, 1957 to help cover their heating costs.
However, from this winter only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment.
The Treasury said the changes would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million – so just under 10 million would miss out.
They added that about £1.5 billion will be saved per year by targeting winter fuel payments.
The increase represents a 145% rise in claims compared with the 16 weeks before the Chancellor’s announcement.
But the number of approvals has risen 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.
“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.”
The figures come as Britain endures a cold snap, with the Met Office having issuing cold health warnings for northern England and the Midlands on Tuesday.
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.
Recommended Reading:
- The energy bill cutting hack called a 'no-brainer' by Martin Lewis
- Energy bills will rise again from January as Ofgem confirms price cap increase
-
Brits urged to check eligibility for cost of living payment activated this week
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 winter fuel payment.”
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 was “surprising… given the importance of reaching those in need”.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here