By GB News (World News) | Created at 2024-11-28 13:58:58 | Updated at 2024-11-28 16:50:25
2 hours ago
Pension Credit applications have surged by nearly 150 per cent since Labour announced plans to means test the Winter Fuel Payment but "more than half of the claims processed were unsuccessful", according to one of the UK's leading pensioner charities.
Furthermore, only five per cent of pensioners eligible for the energy bill benefit are being paid, new Government figures reveal.
Some 150,000 applications were submitted after Chancellor Rachel Reeves' July announcement with the Government processing 51 per cent of these claims.
The Chancellor confirmed that only those receiving Pension Credit or other means-tested benefits would remain eligible for the up to £300 in energy bill support.
The Department for Work and Pensions (DWP) has deployed 500 extra staff to handle the influx of claims.
Pension Credit is reserved for pensioners on low incomes. Notably, over half of those applying for Pension Credit are being rejected, based on the DWP's figures.
As of April 1, 81,500 applicants have been unsuccessful which is only 500 more than were approved for the benefit.
However, just 42,500 applications have been approved during this period, representing less than five per cent of the 880,000 people identified as missing out on the benefit in July.
As of April 1, there have been 215,200 applications for Pension Credit, of which 161,800 have been processed, leaving a backlog of 53,400.
The number of approvals has increased by only 17 per cent compared to the previous period.
Meanwhile, refusals have nearly doubled from 27,100 to 53,100 applications. These rejections come as Britain faces a cold snap, with the Met Office issuing cold health warnings for northern England and the Midlands.
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Pensioners are applying for Pension Credit but only five per cent of those missing
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Those who apply before December 21 will receive backdated payments of both Pension Credit and the Winter Fuel Allowance.
When Reeves announced the means testing of Winter Fuel Payments, she claimed the policy decision would save around £1.5billion.
The move was presented as necessary to help address a £22bn deficit in public finances that Labour claims was left by the previous Conservative government.
Labour has invested approximately £250,000 in advertising related to Pension Credit since the announcement, according to a Freedom of Information (FoI) request by Quilter Cheviot.
Rosie Hooper, a chartered financial planner at the company, called this figure surprising given the importance of reaching those in need.
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."
Caroline Abrahams, Charity Director at Age UK, called the high rejection rate "a massive disappointment".
Previous figures suggested that 850,000 households are estimated to be eligible but not claiming Pension Credit
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"More than half of the claims processed during the period covered by these statistics were unsuccessful, an astonishingly high figure", she said.
She highlighted that applicants wouldn't go through the "relatively comprehensive form" unless they desperately needed the money.
Abrahams criticised the DWP's handling of claims, noting "long delays" due to the system being overwhelmed.
She warned there was limited time for the Treasury to "soften the blow on pensioners living on low and modest incomes".
Liberal Democrat Treasury spokesperson Daisy Cooper condemned the figures as "a damning indictment of the Government's failure to protect pensioners this winter."
"Millions of vulnerable pensioners are still set to lose their winter fuel payment just as the cold weather bites," she warned. Cooper criticised the government's rushed implementation of the changes.
