10 September 2024
New freedom of information data from the Department of Work and Pensions (DWP) shows that 271,761 pensioners have been refused pension credit following a claim since 2019.
The news comes following the Chancellor’s announcement that the winter fuel payment would now be made only to those on low incomes who received certain benefits such as pension credit.
The data shows that since the 2019/20 tax year up to 31st July 2024 the DWP received a total of 848,973 pension credit claims of which 572,565 were awarded. Therefore, around two-thirds (67%) of claims were successful over the period.
|
Year |
Claims Received |
Claims Awarded |
Claims Refused |
Outstanding Claims Awaiting Decision |
|
2019/20 |
94,892 |
84,164 |
10,370 |
|
|
2020/21 |
128,135 |
95,001 |
32,646 |
|
|
2021/22 |
110,866 |
81,519 |
28,834 |
|
|
2022/23 |
240,562 |
143,031 |
95,515 |
|
|
2023/24 |
214,309 |
130,366 |
83,168 |
|
|
2024/25 |
60,209 |
38,484 |
21,229 |
39,498 |
There was a 116% increase in the number of people claiming pension credit in 2022/23 compared to the year earlier. This was due to a sustained marketing campaign from the government to increase the number of applicants so that more low-income pensioners could benefit from cost-of-living payments and a higher income.
The nationwide campaign promoted pension credit in a variety of ways – including press advertising, on the radio and social media, via internet search engines and on screens in Post Offices and GP surgeries.
To successfully get pension credit in the UK, you need to meet the following criteria:
- You must have reached State Pension age, which is currently 66 or older.
- You must live in the UK.
- Your weekly income should be below £218.15 if you’re single, or £332.95 if you’re in a couple. If you have a disability or caring responsibilities, you might still qualify with a slightly higher income.
- If you have savings and investments over £10,000, each £500 above this amount counts as £1 in additional income per week when calculating eligibility. For example, if you have £11,000 in savings, this counts as £2 income a week.
Pension Credit is made up of two parts:
- Guarantee credit which tops up your weekly income to the minimum guaranteed level.
- Savings credit – is a small top up for people who reached state pension age before 6 April 2016 who have a modest amount of income or savings.
In addition, if you receive pension credit, you may be eligible for several additional benefits such as a free TV licence if you’re 75 or older, which covers everyone living at your address.
You might also get help with your rent through housing benefit and a discount on your council tax as well as other benefits that can ease financial pressure.
You can apply online via the GOV.UK website or by calling the Pension Service helpline.
Jon Greer, head of retirement policy at Quilter:
“There is a real concern that the “difficult decisions” made by the new Labour government could significantly impact Britain’s poorest. Low-income pensioners, who might just miss out on qualifying for pension credit and, consequently now, the winter fuel payment, are particularly at risk despite not being wealthy.
“Another worry about the new policy is that many pensioners may still be unaware of their eligibility for pension credit. It is evident that when the government actively promotes pension credit, there is a noticeable increase in the number of applicants, which is positive. However, with a third of pensioners who apply for pension credit being refused, there is considerable confusion over who is eligible.
“Following the announcement regarding the winter fuel payment, we know that the number of claims has risen due to the negative headlines, but the government to continue with this policy effectively must invest considerable effort into further promoting the application process and its benefits or risk literally living pensioners out in the cold this winter.”
