28 August 2025
If you are covering the latest pension credit data, released by the DWP, please see the following comment from Jon Greer, head of retirement policy at Quilter:
“Today’s figures show the pension credit surge triggered by last year’s winter fuel payment changes is now easing, but the number of claims being rejected remains high. In other words, many people who apply are not eligible for pension credit and may have applied just in case they might be. This could point to a general complexity around the eligibility rules and the impact of the wider awareness campaign about the take up of pension credit related eligibility for the Winter Fuel Payment. Applications so far this financial year are down 16% compared to the same period last year (79,200 vs. 94,500), while successful awards are essentially flat (up by 200) and the number of claims processed with no award has increased by 2%.
“Looking at the year since the July 2024 winter fuel policy announcement, the system has processed far more cases: applications up 44% to 320,300, clearances up 63% to 344,700, and awards up 46% to 181,100. However, the number of claims processed with no award has risen even faster, up 88% to 163,500. This shows that while interest in pension credit has grown, many applicants are still falling short of the eligibility criteria. Last winter over half of processed claims were being denied, and these figures confirm that trend has continued.
“The operational picture is more encouraging. The DWP has cut the backlog dramatically from a peak of 85,600 outstanding claims in mid‑December 2024 to 12,100 by mid‑August 2025, an 86% reduction, after processing times 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 but for those with an income over £35,000 per annum and aren’t in receipt of pension credit or another relevant means tested benefit, 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 ‘deadline effect’ we saw last autumn but reinforces the importance of claiming for those on low incomes. The message remains simple, if you think you might qualify, 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."
