DWP 'working hard' to tackle Pension Credit backlog  after Winter Fuel Payment cut

Stella Creasey says cutting benefits will not 'magically' create jobs for unemployed
GB NEWS
Patrick O'Donnell

By Patrick O'Donnell


Published: 06/05/2025

- 21:14

Updated: 06/05/2025

- 22:50

The benefit is a top-up payment reserved for those on low income who are of state pension age

The Department for Work and Pensions (DWP) has revealed that 78 per cent of new Pension Credit claims are now being processed within the targeted 50 working day timescale.

Pensions Minister Torsten Bell says the DWP is "working hard to meet its published timeliness standard of processing claims and reduce processing times".


This latest update comes as part of ongoing efforts to improve the delivery of this crucial benefit for pensioners on low incomes following Labour's decision to means-test Winter Fuel Payments.

Older Britons now need to be eligible for Pension Credit to claim the energy bill benefit. Bell also confirmed that "escalation arrangements are in place for cases where individuals are identified as being or in immediate hardship".

Woman on laptop and DWP logo

DWP claims it is "working hard" to address Pension Credit processing times

GETTY

In a detailed written response to Liberal Democrat MP Chris Coghlan, the DWP Minister revealed that more than 500 staff have been reassigned to accelerate the processing of Pension Credit claims.

The strategic redeployment has yielded significant results. Bell highlighted that between July 29, 2024, and February 9, 2025, the department processed 211,600 claims.

This represents an impressive 87 per cent increase in clearance rates. The boost in processing capacity comes as the DWP has also updated its online Pension Credit system.

These improvements aim to ensure more elderly citizens can access this vital financial support without excessive delays. The updated online system could help pensioners claim a top-up worth up to £4,300 over the 2025/26 financial year.

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Older man and Winter Fuel payment letterPensioners are distressed about recent changes to the Winter Fuel Payment allowance GETTY

Pension Credit remains the most underclaimed benefit in the UK despite being designed to provide vital financial support for low-income older people.

Nearly 1.4 million older people across Great Britain currently receive this means-tested benefit. Many elderly individuals mistakenly believe that having savings or owning their home makes them ineligible.

However, even an award of just £1 per week is enough to unlock additional support with housing costs, heating bills and council tax.

This extra help is particularly important for boosting pensioners' income during the ongoing cost of living challenges. There are two types of Pension Credit available - Guarantee Credit and Savings Credit.

To qualify for Guarantee Pension Credit, you must be state pension age with a weekly income below £227.10 for a single person or £346.60 for a couple.

These amounts may vary if you are a carer or have certain housing costs. Savings Credit is only available if you reached State Pension age before April 6, 2016, or have a partner who did and was already receiving it.

LATEST DEVELOPMENTS:

Pensioner sits by electric heaterPension Credit is a benefit reserved for lower income pensioners GETTY

You must also have a qualifying income of at least £198.27 a week for a single person or £314.34 a week for a couple. Savings Credit may provide up to £17.30 a week for a single person or £19.36 a week for a couple.

The exact amount depends on your income and savings, including any assumed earnings from savings and capital exceeding £10,000.

Guarantee Credit offers more substantial support with up to £227.10 weekly for a single person. Couples (married, in a civil partnership or cohabiting) could receive up to £346.60 per week.Additional support may be available if you are disabled, a carer, or have specific housing costs.

Older adults can easily check their eligibility using the online Pension Credit calculator on GOV.UK.