Pension Credit applications surge as Winter Fuel Payment deadline looms

Rachel Reeves’ decision to means-test the Winter Fuel Payment has caused fury among retirees and campaigners with the benefit, worth up to £300, now only available to low-income pensioners who qualify for Pension Credit top-ups.

Pension Credit has historically been chronically underclaimed, with over a third of households who could be eligible failing to make a claim each year, according to the government.

This could be for a number of reasons, from a lack of awareness to difficulties filling out forms or a reluctance to be seen as a benefit claimant, but the result is hundreds of thousands of people missing out on a vital source of income worth thousands of pounds a year on average.

The decision to means-test the Winter Fuel Payment means it’s even more important those who could qualify for Pension Credit make a claim.

The fact these latest figures show a significant surge in applications suggests the attention given to the announcement has spurred people into action and retirees still have until 21 December to make a Pension Credit application.

While this process can feel intimidating, it is worth doing if you think you might qualify. The DWP offers a useful online tool to check if you might qualify for Pension Credit before going through the application service, and organisations like Citizens Advice and Age UK can also help guide you through the process.

Pension Credit explained

Pension Credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.

In 2024/25, if you're over state pension age (66), single, and your income is less than £218.15 a week, then pension credit will top you up to that amount. For a couple, the combined income figure is £332.95.

In relation to Pension Credit, your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it's up to you to claim Pension Credit.

For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you're aged 75 or over). The decision to end universal Winter Fuel Payments means it also becomes a gateway to the means-tested Winter Fuel Payment.