Just Group and PensionBee comment Data released by the Department for Work and Pensions (DWP) this morning provides an update on Pension Credit claims in the year since it was announced (on 29 July 2024) that the Winter Fuel Payment (WFP) would be restricted to those receiving Pension Credit. In the year since that announcement (29 July 2024 to 27 July 2025), claims have jumped 44% rising by 98,200 extra applications to 320,300 compared to the comparable period in 2023/24. 181,100 Pension Credit claims were cleared and awarded in the year since the WFP announcement; an increase of 46% increase or 57,200 extra claims compared to the year previous.
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Stephen Lowe, group communications director at retirement specialist Just Group, commented: “The take up of Pension Credit has been subject to a harsh spotlight since the Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits. There has clearly been a significant boost in Pension Credit take up with nearly 100,000 more applications annually following the Winter Fuel Payment announcement, with over 57,000 of those claims awarded. This will be seen as a notable success in bolstering long-term take up a crucial benefit targeted at lower income pensioners. However, it remains a drop in the context of the estimated 700,000 families that are eligible for Pension Credit and not claiming it. These people may be failing to claim for a number of reasons – they may simply be unaware of the benefit, not know how to claim or assume they are not eligible if they own their own home. Just Group’s research conducted this year among people aged over 66 found that four in 10 (40%) homeowners and one in seven (15%) of renters had never checked their benefit entitlement. If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility. The government website has links to useful third-party calculators (https://www.gov.uk/benefits-calculators) while other good sources are Citizens Advice, local councils and charities.”
Lisa Picardo, Chief Business Officer UK at PensionBee, commented: “Today’s figures show that despite the expansion of the Winter Fuel Payment last summer delivering a clear boost to Pension Credit claims, momentum is already fading, with new claims down 16% so far compared to the equivalent period last year. With around 700,000 eligible pensioner households still missing out on support worth up to £4,000 a year according to the Work and Pensions Committee, the scale of the challenge is undeniable. Pension Credit is not only vital extra income for some of the most vulnerable older people, it is also a gateway to further help such as cost of living payments and winter fuel payments. Low take-up rates, which have hovered between 61% and 66% for over a decade according to the government’s own data, underline how urgently we need clearer communication, simpler claims processes and a joined-up national strategy to ensure every eligible household receives what they are entitled to. No one should face pensioner poverty because of an administrative barrier or lack of awareness”.
Pension Credit applications and awards, August 2025
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