Pension Credit applications plummet after Winter Fuel Payment U-turns, DWP confirms

Pension Credit applications are down year-on-year following the Labour Government's Winter Fuel Payment U-turns, the Department for Work and Pensions (DWP) has confirmed.The number of state pensioners successfully claiming the retirement benefit has fallen by nearly a quarter in the past year, raising concerns that vulnerable older people may be missing out on support they are entitled to. Official DWP figures show that 138,165 Pension Credit claims were awarded in 2025-26, which is down from 180,970 the previous year.Campaign groups have warned that eligible pensioners who were prompted to apply by changes to Winter Fuel Payments may have since disengaged from the system.Pension Credit, which tops up the income of the poorest retirees by up to £3,900 a year, has long suffered from low take-up, with many entitled claimants never applying.Applications for the benefit surged in 2024-25 after the then-government linked Winter Fuel Payments to Pension Credit receipt, pushing hundreds of thousands of pensioners to apply. However, overall applications have since fallen by 34 per cent, dropping from 321,035 to 211,125, after the Winter Fuel Payment policy was reversed and payments were extended to all pensioners above state pension age. The DWP cleared 224,685 claims in 2025-26, a decrease of 34 on the previous year's 340,565. LATEST DEVELOPMENTSOver 50s 'sleepwalking' into pension disaster as Gen X face 'less financial security'Pension warning as savers could be locked out of retirement funds for two extra yearsState pensioners to receive extra £37 every month as DWP confirms payment boostOf those, 86,520 were rejected, a 46 per cent fall on the year before, suggesting last year's surge was partly driven by ineligible applicants prompted to come forward by the Winter Fuel incentive.Despite this, the sharper fall in rejections compared to awards means the proportion of successful claims has actually risen, with 61 per cent of cleared claims resulting in an award compared to 53 per cent the previous year. Charities have long argued that Pension Credit's complexity and the stigma around claiming benefits deter many entitled pensioners from applying. Age UK estimates that around a third of those eligible for Pension Credit do not claim it, leaving billions of pounds of support uncollected each year. Campaigners fear that the disruption caused by the Winter Fuel Payment changes may have put off some pensioners who had finally been prompted to engage with the system. Last year, PensionBee's chief business officer Lisa Picardo broke down why older Britons should consider checking their eligibility for the retirement benefit She shared: With around 700,000 eligible pensioner households still missing out on support worth up to £4,000 a year, according to the Work and Pensions Committee, the scale of the challenge is undeniable. Pension Credit is not only vital extra income for some of the most vulnerable older people, it is also a gateway to further help such as cost of living payments and winter fuel payments. Our Standards: The GB News Editorial Charter