Pension Credit news: claims soar by 152%

08 November 2024

Recent Pension Credit news reveals a 152% surge in claims from low-income households, driven by removal of Winter Fuel Payment as a universal credit.

Thousands of older, low-income households have been motivated to apply for Pension Credit. This follows the decision to restrict Winter Fuel Payments to people receiving benefits including Pension Credit, rather than automatically paying it to most people receiving the State Pension.

More people are now exploring their eligibility for Pension Credit, not only as a crucial source of income in itself but also as a gateway to other valuable benefits, including the Winter Fuel Payment.

According to data from GOV.UK, around 74,400 Pension Credit claims were received in the eight weeks following the announcement on 29 July. This compares to around 29,500 claims in the previous eight weeks. It represents a remarkable 152% increase in Pension Credit claims received by the Department for Work and Pensions (DWP). 

The proportion of applications submitted online has also risen significantly, from 59.7% the week before the announcement to 91.8% by the week ending September 16.

However, the Big Issue recently reported that, as of mid-September, Pension Credit applications were taking on average 28 working days to process - and that some claimants were waiting up to three months for their application to be processed. That could mean some people missing out on receiving their Winter Fuel Payment when they most need it.

Pension credit to increase by 4.1% in April

In other Pension Credit news, the Autumn Budget of 30 October included a rise by 4.1% to the Pension Credit standard minimum guarantee from April 2025. This translates to an annual increase of £465 in the single pensioner guarantee and £710 for couples. Such increases will provide much-needed financial relief to eligible individuals as they navigate rising living costs.

Additionally, the Treasury has announced that the administration of Pension Credit and Housing Benefit will be consolidated for new claimants starting in 2026, two years earlier than previously planned. This change aims to make it easier for more people to access the benefits they are entitled to.

As winter approaches, keeping informed of the latest Pension Credit news and any other financial support available, is more crucial than ever for older people. For information on how to apply for Pension Credit, visit GOV.UK.

Sources

Pension Credit set to increase by 4.1% in April 2025: Autumn Budget 2024: State pension and Pension Credit to rise 4.1% in April. MoneyWeek.com. Accessed 31 October 2024.

152% increase in Pension Credit claims received: Weekly Pension Credit claims received from 1 April 2024 to 22 September 2024. Gov.uk. Accessed 31 October 2024.