New figures show that Pension Credit claims in the UK are taking much longer to process. In December 2024, it took an average of 87 working days to process claims – much higher than the government’s target of 50 working days. This information came through a Freedom of Information (FoI) request made by Quilter, a leading pension and financial advisory firm.
What Is Pension Credit?
Pension Credit is a government benefit for older people who are on a low income. It helps increase their weekly income to a minimum level and gives access to other financial support like Winter Fuel Payments, which help pensioners pay their energy bills during cold months.
Why the Delays?
The long wait times are due to a sudden increase in the number of people applying. From July 29, 2024, to February 23, 2025, the Department for Work and Pensions (DWP) received around 235,000 applications for Pension Credit. That’s an 81% increase compared to the same period the previous year.
What Caused the Surge in Applications?
In late 2024, the government made changes to Winter Fuel Payment rules. The payment, worth up to £300, became restricted to only those receiving Pension Credit or other means-tested benefits. This caused panic among pensioners, many of whom rushed to apply to keep their fuel payments.
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December 2024 was especially important because it was the last chance to backdate Pension Credit claims in time to still receive the Winter Fuel Payment.
What Was the DWP’s Usual Record?
During the 2023/24 tax year, DWP did a good job handling applications. About 77.7% of Pension Credit claims were processed within the 50-working-day target. But with so many new claims flooding in, this performance is expected to drop sharply in the 2024/25 tax year.
Public Reaction and Political Response
The changes to the Winter Fuel Payment have been very unpopular, especially with older voters. A YouGov poll showed that:
- 59% of the general public are against the cuts
- 78% of people aged 55 and over strongly oppose the new rules
Due to this backlash, the Labour Party has hinted at reversing these changes. During a recent Prime Minister’s Questions, Labour leader Keir Starmer confirmed that the party is planning to widen eligibility for the Winter Fuel Payment again if elected.
The massive delays in Pension Credit processing have put extra stress on many pensioners, especially those already struggling with the high cost of living. The recent rule changes created a last-minute rush that overwhelmed the system. Going forward, any change in benefit policies should be made more carefully, with better planning and clearer communication to avoid such situations. If you’re eligible for Pension Credit, apply early and keep checking the status of your claim.
FAQs
Why is Pension Credit processing delayed?
Processing delays are due to a sudden rise in applications, especially after Winter Fuel Payment rules changed in late 2024.
What is the current average processing time for Pension Credit?
In December 2024, the average time reached 87 working days, far above the DWP target of 50 days.
What caused the surge in Pension Credit claims?
Changes to Winter Fuel Payment eligibility meant only those on Pension Credit could get it, causing a rush to apply.
Will the Winter Fuel Payment rules change again?
Labour has hinted at reversing the restrictions and widening eligibility after strong public opposition.
What should pensioners do if they haven’t received a response?
Applicants should be patient due to the backlog but can contact DWP to check on the status of their claim.
So really we are still not getting it another lie I get less pension because I have a small works pension which is taxed so not worth having. . Yet if I hadn’t working would get pension credit cost of living payment help with rent worst government ever