Marvin OnumonuPension credit claims jumped 44% in the year since the Government said the winter fuel payment would be restricted to those on pension credit and other income-related benefits, with 98,200 more applications taking the total to 320,300, according to Department for Work and Pensions (DWP) figures.
From July 2024 to July 2025, 181,100 pension credit claims were cleared and awarded, up 46% or 57,200 compared to the previous year.
David Brooks, head of policy at Broadstone, said: “It is great news over 57,000 more pensioners entitled to Pension Credit are now receiving this important financial benefit to support their retirement incomes.
“Pension Credit is explicitly targeted at lower income pensioners but hundreds of thousands of eligible retired households are still not claiming this benefit.
“While the Government’s policy on Winter Fuel Payments has grown awareness of this issue and increased take up of Pension Credit significantly, the rise of claimants in the past year still does not get near to closing the gap sufficiently.”
Brooks added: “We would urge all pensioners to check whether they are eligible for Pension Credit as we head towards another winter that appears likely to be dominated by the cost of living, the adequacy of the State Pension and further tax rises.”
Jon Greer, head of retirement policy at Quilter, said: “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.”
Greer added: “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.”
He said: “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.”
He added: “Faster decisions mean eligible households get support sooner and ineligible claimants are not left waiting in limbo.”
Greer said from winter 2025/26, everyone in England and Wales will receive the winter fuel payment, but pensioners with an income over £35,000 a year who do not get pension credit or another means-tested benefit will have the full amount recovered through their tax.
Greer noted that pensioners on pension credit will keep the full payment.
Additionally, he said this change should stop the last-minute rush for applications seen last autumn, but it still makes it very important for those on low incomes to claim pension credit.
Greer added that pension credit can also unlock extra help, such as council tax support and a free TV licence for over-75s.
