Pension benefit applications surge after Labour rule change branded 'massive disappointment'

Hundreds of thousands of pensioners have heeded the government's plea to apply for Pension Credit and avoid missing out on the £200 to £300 Winter Fuel Payment, after Labour changed the rules in July to restrict the benefit to older Brits with lower incomes. But despite the numbers, campaigners have branded them a 'massive disappointment.'

In the months since Chancellor Rachel Reeves announced that the annual winter heating help for all pension-age Brits would be restricted to Pension Credit claimants, there has been an incredible 145 per cent surge in applications for the under-claimed benefit. Due to this surge, the Department for Work and Pensions' (DWP) latest data also shows a large backlog of applications, with 53,400 people still awaiting a decision.

Sadly, for many looking for help this winter, around half of the 161,800 applications processed so far were rejected by the DWP. This means that 81,500 will miss out on the previously universal Winter Fuel Payment this year, due to not meeting the Pension Credit maximum income threshold, which is £218 per week for individuals and £332 for couples.

READ MORE: DWP PIP and Universal Credit overhaul set for 2025 - here's what you need to know

While the government has stated it is "pleased" with the result of its months-long sign up drive for Pension Credit, which has now seen a total of 42,500 households actually given the benefit, some charities have been critical. Charity Director at Age UK Caroline Abrahams told the Independent: "It’s a massive disappointment to see so many older people applying for Pension Credit and being turned down because they are ineligible.

“Because the process of applying for Pension Credit requires you to fill in a relatively comprehensive