Over half of Pension Credit claims REJECTED ahead of huge Winter Fuel Payment deadline this week
OVER half of Pension Credit claims processed in the past nine months have been rejected, new data has revealed.
A whopping 92,000 Pension Credit claims were rejected between April and December 2024 while 91,000 people were awarded the benefit.
That's according to a freedom of information request (FOI) to the Department for Work and Pensions (DWP) by wealth firm Quilter, shared exclusively with The Sun.
Between April 2023 and March 2024, the number of claims accepted was higher than those rejected at 134,000 and 112,000, respectively, the data showed.
The new figures come ahead of a major deadline to apply for Pension Credit in order to get this year's Winter Fuel Payment, with final applications due on December 21 to get the up-to-£300 handout.
The Winter Fuel Payment used to be available to all pensioners, but earlier this year, the government announced that only those claiming Pension Credit and other means-tested benefits would be eligible from winter 2024/25.
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Pension Credit is a benefit for older people on low incomes that tops up their weekly income to £218.15 if they're single or £332.95 as a couple.
The decision to tie Winter Fuel Payment to Pension Credit was criticised, as many as 800,000 people who should have still qualified were set to miss out this year because they don't claim Pension Credit.
The lack of take-up of the benefit is largely attributed to a lack of awareness that it exists.
The government launched a drive to encourage more people to check if they could get the benefit earlier this year, known as its Pension Credit take-up campaign.
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The DWP's Pension Credit helpline has been inundated with calls from pensioners trying to find out if they qualify over the past few months.
Pensions Minister Emma Reynolds recently told Parliament that the DWP had appointed 500 extra staff to support the increase in applications.
But the new figures from the DWP show thousands of people applying since the drive began will have got a nasty shock when their claim was denied.
Helen Morrissey, head of retirement analysis at financial firm Hargreaves Lansdown, said it's heartening to see a surge in Pension Credit claims, but more clarity around who could benefit is clearly needed.
"The fact that so many claims are being rejected may come from a number of factors – it could be because incorrect or incomplete information is on the forms for instance," she said.
"But it could also be that people may not have a thorough understanding of the criteria for claiming, and more could be done to highlight this to would-be claimants.
"The fact remains that thousands of people who could receive pension credit still aren’t getting it, so further information as to who might qualify would really help.”
You might be eligible for Pension Credit if you are 66 or older and your income is below £218.15 a week if you’re single or £332.95 as a couple - this is known as the 'guarantee' part of the credit.
Even if your income is higher, you may be able to claim if you meet other criteria such as being a carer, having a disability, having extra housing costs or having a child living with you.
Despite the high number of rejected claims, Jon Greer, head of retirement policy at Quilter, urged that it's still worth applying to see if you could benefit before the deadline as the extra cash could make a huge difference this winter.
"With the last date for making a backdated claim for pension credit to receive the winter fuel payment now just days away, it is vitally important that pensioners on low incomes check their eligibility," he said.
“While this new data shows that a significant proportion of claimants are being denied pension credit, this should not stop people from applying if they think they might be eligible.
“Pension Credit also unlocks a variety of other benefits that can help with housing costs, council tax, and heating bills.
"If you are unsure about your eligibility, an online pension credit calculator can provide an estimate of potential benefits. Applying is simple and can be done online, by printing and completing a paper form, or by calling 0800 99 1234."
Commenting on the new data, a spokesperson for the DWP said: “Our drive to boost Pension Credit take up has seen applications more than double with over 40,000 more pensioners now receiving Pension Credit, as well as the Winter Fuel Payment. We continue to urge anyone who thinks they may be entitled to Pension Credit to check now.
“Many others will also benefit from the £150 Warm Home Discount and Cold Weather Payments this winter while our extension of the Household Support Fund will help with the cost of food, heating and bills."
How to get the Winter Fuel Payment this Christmas
To be eligible for this year's payment, you must have had an active claim for Pension Credit or another eligible means-tested benefit during the "qualifying week," which ran from September 16-22 this year.
However, due to a little-known loophole, there is still time for pensioners to apply and qualify for the Winter Fuel Payment.
This is because new claims for Pension Credit can be backdated by up to three months.
So, the absolute deadline to claim the benefit and qualify for this year's winter fuel payment is this Saturday, December 21.
Who qualifies for Pension Credit?
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
This is known as "guarantee credit".
So, if your income is lower than this, you are likely to be eligible for the benefit.
If your income is slightly higher, you may still be eligible if you have a disability, you care for someone, you have savings or you have housing costs.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
- Attendance Allowance
- The middle or highest rate from the care component of disability living allowance (DLA)
- The daily living component of Personal Independence Payment (PIP)
- Armed forces independence payment
- The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
You could get the "savings credit" part of Pension Credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension.
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The Sun has a benefits calculator made in partnership with charity Turn2Us that you can use to work out if you're eligible for any benefits you may be missing out on here.
The government also has a Pension Credit calculator you can use to check if you may be eligible
What will I get when I claim Pension Credit?
SOME people will receive thousands of pounds once they claim Pension Credit, while others will be given just pennies.
But it is still worth making a claim either way as it opens the door to more financial help.
Once you claim Pension Credit you may receive:
- Housing Benefit if you rent - worth thousands a year.
- Mortgage Interest support - on up to £100,000 of your mortgage or loan.
- Council tax discount - worth thousands each year.
- Free TV licence if you are aged over 75 - worth £169.50 a year.
- NHS dental treatment, glasses and transport costs for hospital appointments help.
- Royal Mail redirection service discount - worth up to £48.
- Warm Home Discount if you get Guaranteed Pension Credit - worth £150.
- Cold Weather Payment - worth £25 for every seven day period of cold weather between November 1 and March 31.
- Winter Fuel Allowance - worth up to £300 a year.