New figures published today [Thursday 27 February] show a
significant spike in Pension Credit applications following a DWP
campaign to boost uptake, the highest since comparisons began in
2020.
The department has now processed a record number of claims,
reducing the number of applications yet to be cleared from its
peak of 85,500 to just 33,700 by 23 February, which is in line
with normal levels of Pension Credit claims waiting to be
processed.
This has resulted in a record 117,800 applications being awarded
- an increase of 45,800, or 64% - since the Chancellor's
announcement compared to the same period last year.
The department has also successfully boosted the numbers applying
for Pension credit with a record 300,000 Pension Credit
applications received this year alone. In response to the surge
in applications, the DWP deployed 500
additional support staff to process them, resulting in a near
doubling of cleared claims between 29 July 2024 and
23 February 2025.
The Pension Credit campaign and commitment to the Triple Lock
deliver on this government's Plan for Change, demonstrating our
commitment to raise living standards for pensioners and provide
security in retirement.
Building on the success of the campaign last autumn to boost
Pension Credit applications, DWP is exploring
further options to drive up claims by reaching the most isolated
and poorest pensioners who are eligible for support, including:
- Writing to all pensioners who make a new claim for Housing
Benefit and who appear to be entitled to Pension Credit –
directly targeting this group to make a claim
- Starting new research on the triggers and motivations that
encourage people to apply for Pension Credit and to understand
what the barriers to claiming are – interviewing pensioners to
hear their views and learn from their experiences
- Working across departments including HMRC to access databases
with detail on household income, enabling us to identify
pensioner households most likely to be eligible for Pension
Credit and targeting them directly.
Secretary of State for Work and Pensions, said:
I'm delighted we've been able to reach so many pensioners who
need to be on Pension Credit, which can be a lifeline to so many
on low incomes.
The record high number of claims awarded follows months of work
to drive awareness of Pension Credit and then to process the huge
spike in applications we received, and now thousands more
pensioners are accessing the range of support on offer.
We won't stop there. We are absolutely committed to ensuring
every pensioner is supported in their retirement – whether
through our ongoing Pension Credit campaign, extending the
Household Support Fund and our commitment to the Triple Lock on
the State Pension.
Pension Credit provides a lifeline in retirement to pensioners on
low incomes, providing access to additional support, including
housing costs, council tax and the Winter Fuel Payment.
The online claim form – updated by the Work and Pensions
Secretary after listening to the views of pensioners– means it
now takes just 16 minutes on average to apply for Pension Credit
and be eligible for up to £4,300, with 90 percent of new
customers applying using the simple online form, or over the
phone.
The Government is forecast to spend £174.8 billion on benefits
for pensioners in Great Britain in 2025-26. This includes
spending on the State Pension which is forecast to be £146.6
billion in 2025-26. Crucially the government's commitment to the
Triple Lock for the entirety of this Parliament means that
spending on people's State Pensions is forecast to rise by over
£31 billion.
Sarah Pennells, consumer finance specialist at Royal London
said:
There was a lot of focus on December's deadline to claim Pension
Credit in order to qualify for the Winter Fuel Payment for 2024,
but people can apply for Pension Credit any time, and it could be
worth over £4,000 a year.
Our research shows that many people are missing out because they
haven't checked to see if they qualify. Three in ten people
over State Pension age who were on a low income hadn't checked to
see if they were entitled to Pension Credit, while one in ten
pensioners who had been told they qualified for Pension Credit
have yet to apply.
You can backdate your claim for Pension Credit by up to three
months, and the sooner you claim, the sooner you could start
receiving payments. Not only that, but, if you're entitled to
Pension Credit, you'll be able to get extra help with costs such
as rent and Council Tax, which could make a big difference.
Anyone who knows a low-income pensioner who may be isolated and
needs support has been urged to remind or assist family members
and friends to check their eligibility and apply today. Eligible
claims can also be backdated by up to 3 months, ensuring
pensioners do not miss out on the support they are entitled to.
To better support DWP customers, State
Pension and Pension Credit teams have been working more closely
together to support customers. When someone contacts the State
Pension claim line, DWP staff identify
those with potential eligibility for Pension Credit and take a
claim there and then. This means customers don't have to call
both claim lines, getting new pensioners onto Pension Credit as
soon as they are eligible.
