A surge in pension credit applications following changes to winter fuel payments has led to a massive backlog, delaying financial aid for thousands of pensioners.
As of mid-January 2025, over 74,000 claims were still being processed, leaving many older adults struggling to heat their homes during the coldest months of the year.
Fuel
The Government’s decision to restrict universal winter fuel payments has caused widespread concern. Previously, all pensioners received £200 to £300 per household to help with energy costs.
However, after Labour’s election victory in July 2024, Chancellor Rachel Reeves announced that only those receiving means-tested benefits, such as pension credit, would qualify.
This led to a 145% increase in applications, with 150,000 people applying in the 16 weeks after the announcement. The backlog peaked at 92,400 cases by December 23, and although some progress has been made, thousands are still waiting.
Backlog
Despite deploying 500 extra staff, the Department for Work and Pensions (DWP) is struggling to clear the backlog. According to pensions minister Torsten Bell, the number of pending claims had dropped to 74,000 by January 13, but it could take until April 2025 to resolve all outstanding applications.
| Date | Pension Credit Claims Backlog |
|---|---|
| December 23, 2024 | 92,400 |
| January 13, 2025 | 74,000 |
| Estimated Clearance Date | April 2025 |
Waiting
The DWP aims to process claims within 50 working days (10 weeks), but in December, waiting times peaked at 87 working days (17 weeks). While recent applications are being processed faster, many pensioners who applied before the December 21 deadline are still waiting.
Former pensions minister Sir Steve Webb estimates that many applicants will have to wait until March for a decision, with some complex cases taking even longer.
Impact
Charities warn that the delays have left vulnerable pensioners facing a “grim” winter, forcing them to cut back on food, reduce heating, or even skip hot showers.
- Caroline Abrahams, charity director at Age UK, said: “For those waiting months for their winter fuel payment, it’s too late. Some have really struggled this winter.”
- Dennis Reed, of Silver Voices, criticized the Government’s decision, calling it “chaos”.
- Baroness Altmann, a former pensions minister, called ending universal winter fuel payments a “terrible mistake”, arguing that giving money after winter cannot undo the damage caused.
Future
The Government estimates that targeting winter fuel payments to only low-income pensioners will save around £1.4 billion a year. However, nearly 50% of pension credit applications are rejected, meaning many who applied for help will never receive the benefit.
With winter nearing its end, the pressure is on the DWP to process claims faster. While backdated payments are still possible, many pensioners will receive their support months after they needed it most.
FAQs
Why is there a pension credit backlog?
A surge in applications followed the restriction of winter fuel payments.
How long is the current pension credit processing time?
It peaked at 17 weeks in December but is now under 50 working days.
When will the backlog be cleared?
Experts estimate it could take until April 2025 to resolve all claims.
Will pensioners still get winter fuel payments?
Yes, if their pension credit claim is approved, but payments may be delayed.
How much does the winter fuel payment provide?
Eligible households receive between £200 and £300 to help with energy bills.
