27 November 2025
If you are covering the latest pension credit applications and awards statistics, please find below a comment from Adam Cole, retirement specialist at Quilter:
“Today’s figures show that while the pension credit surge triggered by last year’s winter fuel payment changes has eased, the backlog that was created continues to increase the number being awarded the benefit. Applications in the past year are down 26% compared to the equivalent period reported last year, with 231,180 claims received. The delinking of the Winter Fuel Payment to pension credit has clearly brought applications for the benefit to fall back to similar levels seen prior to Labour’s initial policy change.
“Meanwhile, 179,445 pension credit claims were awarded, an increase of 36%, while there was a 14% increase in the number of applications being rejected, highlighting that many will have speculatively applied despite not being eligible on the off chance they get accepted. As the Winter Fuel payment is no longer linked to pension credit, the volatility in these figures will likely reduce over time and return to more normal levels.
“DWP has certainly got its operations for this benefit right-sized once again given where the backlog now stands. By mid-November the backlog stood at 12,940, a huge fall from a peak of 85,600 outstanding claims in mid‑December 2024. There has been an slight uptick in the backlog since the last figures in August, but the DWP is clearly now more comfortable at this level. Indeed, processing times had previously ballooned to 87 working days at the height of the surge. Faster decisions mean eligible households get support sooner and ineligible claimants are not left waiting in limbo.
“From winter 2025/26 the winter fuel payment in England and Wales will be paid universally, although you will need to claim it for the first time or if you deferred your state pension since your last winter fuel payment. The full payment will be recovered via the personal tax system while those on pension credit will retain the full value. This will reduce the rush effect we saw last year, but people shouldn’t be under the illusion that pension credit now doesn’t matter. It remains a chronically underclaimed benefit, so it is important that people do still check if they would be eligible and apply. Pension credit does not just top up weekly income; it can unlock a suite of help from council tax support to a free TV licence for over‑75s, so the gains can be substantial."
