Tens of thousands of pensioners may not receive their Winter Fuel Payments before the end of 2024 due to a significant backlog in processing new Pension Credit claims, according to BBC Verify. This delay follows chancellor Rachel Reeves’ July announcement that Winter Fuel Payments would primarily be limited to those receiving Pension Credit.
DWP: chaos over Winter Fuel Payments
The Department for Work and Pensions (DWP) reported a backlog of 90,000 unprocessed claims as of mid-November, with approximately 9,000 claims being processed weekly. Given the continuous influx of new applications, it’s anticipated that a substantial backlog will persist into the new year. In response, the DWP has allocated an additional 500 staff members to expedite processing.
The surge in applications is attributed to government and charity campaigns encouraging pensioners to apply for Pension Credit, especially after the means-testing announcement for Winter Fuel Payments.
Prior to the announcement, the UK averaged 3,800 weekly applications for Pension Credit; post-announcement, this number has risen to around 9,400. Between 29 July and 17 November, approximately 150,000 new applications were submitted. However, only about 45% of processed applications since 29 July have been approved.
In light of these developments, MPs launched an inquiry on 18 December into how the changes to the Winter Fuel Payment are affecting pensioner poverty. The inquiry aims to assess the impact of the policy shift and the associated delays on the financial well-being of pensioners.
The DWP acknowledges the increased demand and is actively working to process claims as swiftly as possible. Pensioners are encouraged to apply for Pension Credit, which not only supplements their income but also qualifies them for additional benefits, including the Winter Fuel Payment.
Labour: meting out misery
All this compounds the existing chaos and misery caused by Labour’s Winter Fuel Payments cut. Previously, charity Age UK revealed that the cut would deny 1.6 million pensioners in poverty the vital benefit this winter.
As the Canary has already pointed out, this was right as energy bills increase. This is because regulator Ofgem raised the energy price cap from 1 October.
Plus, the DWP’s own figures corroborate this estimate exactly – showing that the Labour government knew this all along.
Specifically, the DWP detailed that:
- 1.6 million pensioners living in relative poverty after housing costs – 84% – were not claiming Pension Credits.
- 1.2 million pensioners living in absolute poverty after housing costs – 85% – were not claiming them.
Now, even those that are eligible for Pension Credits – therefore the Winter Fuel Payments – will not be getting them in time. It shows the disregard the Labour government has for marginalised people – and could have catastrophic consequences this winter.
Featured image via the Canary