Pension credit score purposes surge 145% after Labour means-tested the Winter Fuel Payment – this is tips on how to apply

Around 150,000 pension credit claims have been submitted in just 16 weeks since Rachel Reeves announced Winter Fuel Payments will be means-tested.

The number of applications jumped 145 per cent following the statement – up from 61,300 applications made in the 16 weeks prior to the announcement, official data shows.

Tom Selby, director of public policy at AJ Bell, said: ‘Rachel Reeves’ decision to means-test the Winter Fuel Payment has caused fury among retirees and campaigners with the benefit, worth up to £300, now only available to low-income pensioners who qualify for pension credit top-ups.

‘The decision to means-test the Winter Fuel Payment means it’s even more important those who could qualify for pension credit make a claim.’

According to the Department for Work and Pensions, of the 161,800 pension credit claims cleared since April this year, just 81,000 were granted, with a similar number being turned down.

Some 53,000 people are currently waiting for an outcome on their application.

‘Because the process of applying for pension credit requires you to fill in a relatively comprehensive form you wouldn’t bother unless you really need the money, so these statistics also reflect the acute concern felt by many older people at the loss of their Winter Fuel Payment,’ Caroline Abrahams, charity director at Age UK, said.

Liberal Democrat MP Daisy Cooper called the latest figures a ‘damning indictment of the Government’s failure to protect pensioners this winter.’

The Liberal Democrats called for the Government to ‘recognise their mistake, scrap this unfair cut and avoid older people being forced to choose between heating and eating this winter.’

The surge in applications following the Chancellor’s decision comes as many fear having to tighten their purse strings in order to pay for heating costs this winter. With vast numbers of eligible retirees failing to claim pension credit, this could prove a way of helping tide themselves over the colder months.

Rosie Hooper, chartered financial planner at Quilter Cheviot said: ‘The last date for making a backdated claim for pension credit to receive the Winter Fuel Payment is now less than a month away, so it is vitally important that pensioners on low incomes check their eligibility.

In order to qualify for the Winter Fuel Payment retirees must apply for pension credit by 21 December.

Pension credit gives a weekly income of at least £218.15 for single people or £332.95 for couples. 

The Winter Fuel Payment offers between £100 and £300 per year on top of this to help cover the costs of heating your home.

In the past, pension credit has not been claimed by as many as a third of those eligible each year. 

According to the Government, some 880,000 households could be missing out on more than £3,900 per year in pension credit payments.

Those who receive pension credit are eligible for Winter Fuel Payments.

Stephen Lowe, of Just Group, said: ‘They may be failing to claim for a number of reasons – they may simply be unaware of the benefit, assume they are not eligible or not know how to claim. 

‘Our own research among over-65s found that nearly two in five homeowners and one in seven renters had never checked their benefit entitlement.’

How to apply for pension credit and get help with claims

If you are elderly and not well off, pension credit tops up weekly income to a minimum of £218.15 for single people and £332.95 for couples.

On average it is worth around £4,000 a year on its own, but pension credit also opens the door to a lot of additional help with household bills.

You can gain thousands of pounds on top including help with housing costs, heating, council tax and a TV licence if you are over 75, and other bills.

Find out more about pension credit here and about the rules on who is eligible here.

You can apply yourself by phone on 0800 99 1234, claim pension credit online or get a form to do it by post.

A friend or family member can apply on behalf of an elderly person.

In Scotland, a new Pension Age Winter Heating Payment will eventually replace the Winter Fuel Payment.

But for this winter, people over state pension age who qualify will receive a payment in line with the Winter Fuel Payment, and this will be means-tested. 

Check here if you live in Scotland and here for Northern Ireland.

Age UK staff provide help with applications. Any older person struggling with bills, or friends and family who are concerned about them, can call 0800 169 6565.

This line is open every day of the year between 8am and 7pm, or you can visit Age UK’s help page here.

It also has a free, anonymous benefits calculator which can provide an estimate of what you could be entitled to if you want to find out this information privately.

Age UK notes that the Household Support Fund has been extended to help struggling households with bills and essential costs over winter.

Money should be specifically set aside for older people, so it says they should contact their local council to see if they’re entitled to any support.

Independent Age, a charity focused on improving the lives of older people in financial hardship, offers help on its free phoneline 0800 319 6789.

 Advisers from the charity carry out welfare benefit checks to ensure callers are accessing all available support, including pension credit and the Winter Fuel Payment.

What does the Government say?

‘We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock,’ says a spokesman for the Department for Work and Pensions.

‘Over a million pensioners will still receive the Winter Fuel Payment, and our drive to boost pension credit take-up has already seen a 152 per cent increase in claims.

‘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.’