Winter Fuel Payment disaster as DWP 'failed to keep pace' after Pension Credit change in blow to Britons

The revelation comes from data gathered by the pension provider and financial adviser, highlighting serious concerns about the system's ability to handle increased demand in light of recent Government changes.

December proved particularly challenging as it represented the final opportunity for pensioners to submit backdated claims that would still qualify for Winter Fuel Payments, which offer up to £300 in energy bill assistance.

The processing bottleneck coincided with a substantial surge in applications for Pension Credit across the UK with official DWP data confirming that approximately 235,000 pension credit claims were received between July 29, 2024 and February 23, 2025.

This represents an 81 per cent increase compared to the same period in the previous year. The dramatic rise in applications was triggered by controversial changes to the Winter Fuel Payment scheme, which restricted eligibility to those receiving Pension Credit or other means-tested benefits.

Many pensioners rushed to apply for the benefit, which is reserved for those on low income who are of state pension age, specifically to maintain their eligibility for the Winter Fuel Payment top-up.

The DWP had previously maintained a relatively strong processing record, with 77.7 per cent of pension credit claims processed within the 50-day target during the 2023/24 tax year.

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However, this performance metric is expected to decline significantly for 2024/25 due to the unprecedented volume of new claims. Labour has hinted plans to widen the eligibility criteria for the winter fuel payment following significant public backlash against the previous restrictions.

This policy reversal was confirmed earlier this month during Prime Minister's Questions, where Keir Starmer indicated a change in approach to the controversial benefit changes.

The original policy has proved deeply unpopular, particularly among older voters with polling from YouGov suggests that 59 per cent of the general public oppose the cuts to winter fuel payments.

Polling suggests that opposition to Winter Fuel Payment means-testing jumps to 78 per cent among those aged 55 and over. Last month, Labour saw sw

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Jon Greer, the head of Retirement Policy at Quilter, commented: "It's encouraging that awareness of Pension Credit is increasing, but the system must be equipped to manage the consequences of policy decisions.

"Processing delays of up to 87 working days are simply too long especially when low-income pensioners rely on this support to heat their homes during winter."

He added: "The Government's aim to better target assistance is understandable, but the administrative infrastructure has failed to keep pace. As a result, some of the most vulnerable may have been left out in the cold, quite literally."

Quilter encourages eligible pensioners to apply for Pension Credit even if they missed last year's deadline, as it unlocks access to various benefits including council tax reductions, free TV licences for over-75s, and future cost-of-living payments.