Processing pension credit applications has recently become much slower in the UK. This delay happened after the government changed rules about the winter fuel payment, which helps pensioners pay their heating bills. Many pensioners faced long waits for their benefits, causing worry during the cold months. In this article, we will explore why these delays happened, what pension credit is, and how the government and experts are responding.
Long Waits for Pension Credit Applications
At the end of last year, pension credit applications took an average of 87 working days to process. This is much longer than the government’s goal of 50 days. The Department for Work and Pensions (DWP) missed this target for nine weeks straight from October to December 2024. Because of these delays, pensioners who applied in December would not start receiving their payments until April 2025, missing support during the winter season when they needed it most.
Why Did Processing Times Increase?
The delays happened after the government announced changes to the winter fuel payment. This payment gives up to £300 to pensioners to help with heating costs. The government decided to restrict who could get this payment by requiring people to receive pension credit or other benefits to qualify. This change led to a big rise in pension credit applications as more pensioners tried to qualify.
Between July 2024 and February 2025, the DWP saw about 235,000 pension credit claims, which is 81% more than the previous year. This surge made it harder for the DWP to keep up with the applications, leading to longer waiting times.
What Is Pension Credit?
Pension credit is a benefit for people who have reached the state pension age and have a low income. It helps by topping up their weekly income to at least £227.10 for single people and £346.60 for couples. Besides providing financial support, pension credit also allows access to other benefits, such as a free TV licence. Despite its importance, many eligible pensioners don’t claim pension credit. Last year, the government estimated around 800,000 people missed out on this help.
Government and Expert Responses
Labour leader Sir Keir Starmer recently said the government plans to change the winter fuel payment rules again to help more pensioners qualify. He acknowledged that pensioners are still struggling with the cost of living and stressed the need to ensure people feel improvements in their everyday lives.
Experts warn that the government must prepare its systems before making major changes to policies like these. Jon Greer from Quilter said it is good that more people know about pension credit, but the government needs better systems to handle the extra claims. He pointed out that delays of nearly 90 days are too long, especially for pensioners relying on this support during winter.
Current Situation and Future Outlook
The good news is that processing times are improving and have now returned to around 50 working days. Still, the increase in claims means the DWP faces ongoing challenges to keep up with demand. The number of claims processed within the 50-day target may fall this year compared to last, highlighting the need for better planning and support.
FAQs
What is pension credit?
Pension credit is a benefit for low-income people over state pension age. It increases their weekly income and offers access to other perks like a free TV licence.
Why did pension credit application times increase in late 2024?
Times increased due to a surge in claims after the government changed winter fuel payment rules, limiting eligibility and causing many pensioners to apply for pension credit.
How long did pension credit applications take to process at the peak?
At the peak in December 2024, it took an average of 87 working days to process pension credit claims.
What is the winter fuel payment?
It is a government payment of up to £300 to help pensioners pay heating bills during winter.
Is the government doing anything to fix the delays?
The government is working to improve processing times, and Labour has promised to change winter fuel payment rules to help more pensioners qualify.
How many pension credit claims increased by in 2024-25?
Claims increased by about 81% compared to the previous year.