July’s announcement that winter fuel payments will be means-tested for the first time has driven a 145% rise in applications for pension credit. However, with a backlog of 53,400 claims and only half of processed applications approved, many pensioners are at risk of losing vital support.
Here, Which? highlights the full range of grants that are available to help with heating costs, and explains what to do if your pension credit claim is rejected.
What's happening to pension credit claims?
As well as boosting the income of low-income retirees, pension credit acts as a gateway benefit. This means it can unlock additional support, including help with housing costs such as rent and council tax, as well as energy bills.
1.4 million pensioners receive pension credit, but an estimated 880,000 eligible households are missing out, according to the latest figures.
Since April 2024, the Department for Work and Pensions (DWP) has received 215,200 claims, of which 161,800 have been processed. However, only 81,000 were approved, meaning nearly half of claims were unsuccessful, and 53,400 are still awaiting review.
Applications surged following the government’s Winter Fuel Payment announcement on 29 July 2024, with 150,000 of these claims made in the 16 weeks that followed – a 145% increase compared to the previous 16 weeks.
Find out moreWhat to do if your pension credit application is rejected
If your pension credit application is rejected, you can reapply at any time, especially if your circumstances change – for example, if you start claiming a disability benefit, lose a partner or spend your savings.
If you disagree with a rejection, you can ask the DWP for a written statement of reasons explaining the decision.
If you believe the decision is incorrect, you have the right to request a 'mandatory reconsideration', which is free and asks the DWP to review your application. This has to be done within one month.
Once the decision-maker has reconsidered, they’ll send you a mandatory reconsideration notice, which includes information about your right to appeal.
Find out moreHow to secure this year's Winter Fuel Payment
The Winter Fuel Payment is worth £200 or £300, depending on your age, and is designed to help with heating costs during the colder months. Since the government's announcement in July, to qualify for the Winter Fuel Payment, you must receive pension credit or other qualifying means-tested benefits.
If you’re eligible for pension credit, you need to apply before 21 December to ensure your claim can be backdated, making you eligible for this year’s Winter Fuel Payment.
Those already receiving pension credit or certain other benefits will usually get the Winter Fuel payment automatically. If you’re newly applying, the payment will follow once your claim is approved.
Payments are typically made between November and December.
Find out more:Five other ways pensioners can get help with heating costs
If you’re struggling to keep up with heating bills, there are several schemes and grants available to help you manage rising costs. Some of these are also means-tested.
These options can provide financial support for energy bills, home upgrades and more.
1. Warm Home Discount
What it is:Who's eligible:The scheme works differently in Scotland, where some households must apply directly to their supplier. In Scotland, eligibility includes those who receive the guarantee credit element of pension credit or those on a low income who meet their energy supplier’s criteria for the scheme.
The scheme is not available in Northern Ireland.
How to claim: Find out more2. Cold Weather Payment
What it isYou’ll receive £25 for each seven-day period with temperatures below 0°C, between 1 November and 31 March.
Who's eligible: How to claim: Find out more:3. Winter Heating Payment
What it is:Who’s eligibleHow to claimFind out more:4. Energy Company Obligation
What it is:Who’s eligibleHow to claimFind out more:5. Boiler Upgrade Scheme
What it is: Who’s eligibleHow to claim:Find out moreundefinedsource https://www.which.co.uk/news/article/winter-fuel-changes-spark-pension-credit-surge-6-alternative-ways-to-get-support-aR71J9t3qCQN