Winter fuel payments could take four years to reach pensioners

A senior woman in her 70s studies documents relating to winter fuel payments for pensioners
Charities have expressed concern about the length and complexity of the online form pensioners have to complete to claim the payment - coldsnowstorm/iStockphoto

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The number of pensioners signing up for pension credit has doubled in five weeks after Chancellor Rachel Reeves announced plans to scrap universal winter fuel payments.

New applications for pension credit rose from 17,900 to 38,500 after Ms Reeves revealed it would be means-tested this winter.

However, experts warned that despite the take-up, it could still take four years for all pensioners eligible for the payment to apply. As many as 880,000 pensioners who could be claiming the benefit don’t, DWP figures suggest.

It comes after the prime minister’s spokesman confirmed that the Government is not looking to “soften the blow” for the 10 million pensioners who will lose out when the winter fuel payment (WFP) becomes means-tested.

Sir Keir Starmer also denied that the Cabinet was split over the cuts to the payments, which had previously been given to all those over state pension age. Most received a payment of £200, with those over the age of 80 receiving £300.

The policy, which was announced on July 29, is set to raise £1.4bn. But if all of the 880,000 pensioners who are eligible apply, the Treasury would face a tax bill of £3.8bn, a report by Policy in Practice found.

Before the announcement, around 4,000 taxpayers on average were applying for pension credit each week, mainly new retirees or those whose circumstances have changed.

Assuming that the higher level of applications continues – an extra 3,700 claims a week – this would represent an extra 200,000 pensioners applying each year.

Pensions expert Sir Steve Webb said: “If we have 880,000 entitled people not claiming, then you’d need to keep going for (more than) four years to clear all the non take-up problem.”

He added: “In reality, once the ‘caravan moves on’, and pension credit drops out of the news, this surge in claims will fall back – just as it did when the BBC restricted free TV licences to the over-75s only on pension credit.”

Applications should be processed within 35 days, the Department for Work and Pensions (DWP) said previously, although a survey in 2022 found that more than 98pc of claimants were waiting more than six weeks.

Some respondents told the Greater Manchester Law Centre that they had waited more than six months.

Historically, take-up of pension credit has been low, with only 63pc of those eligible claiming the credit. Single pensioners are eligible to receive pension credit if they have a weekly income of up to £218, while those in a couple must have an income of less than £332 per week.

Those with a disability or a carer may be able to claim more, but the average pensioner receives £3,800 in support.

It comes after pensioner charities expressed concern about the length and complexity of the online form which pensioners have to complete in order to claim pension credit. The 243 questions on the 22-page form include, “Does your partner agree to your application?”.

A DWP spokesman said: “The number of applications for pension credit have more than doubled since the announcement in July but we know there is more to do which is why we have launched a campaign to boost uptake and awareness.

“We have surged additional staff to cover increasing Pension Credit calls and urge anyone who thinks they may be entitled to pension credit to check now.”

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