DWP urged to take action on delays in claims to secure Winter Fuel Payment

The Department for Work and Pensions has been asked to give an "urgent reassurance" that delays in dealing with a surge in Pension Credit claims won't stop people being able to get the Winter Fuel Payment. The heating allowance has now been restricted to those on Pension Credit and some other means-tested benefits.

The latest date to put in a new claim for Pension Credit and be eligible for this year's Winter Fuel Payment is December 21, 2024, as it can be backdated by three months to cover the qualifying week of September 16-22, when people must meet the conditions for getting the annual heating help. Claims for Pension Credit can take up to eight weeks to process and the Social Security Advisory Committee (SSAC) is worried that a huge surge in applications won't be dealt with in time.

In a letter to the DWP, the regulator said it "remains concerned about the capacity of the Department to process Pension Credit claims in a timely way" and ensure that people will be able to receive their Winter Fuel Payment this year.

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According to a report from Civil Service World, the SSAC has asked the DWP for "urgent reassurance that sufficient resources are being put in place to ensure that the average processing time for successful claims will not increase this autumn." In September, the DWP said it was bringing in an extra 450 extra staff to process Pension Credit claims but the SSAC says recruits will need two months' training first.

The Department has seen a rush to get Pension Credit and has been running campaigns to encourage take-up as it's thought 880,000 older people are eligible but not claiming. Pension Credit claims have already gone up by 152 per cent in the eight weeks since the Winter Fuel Payment changes were announced, and this trend is expected to continue. Labour has projected it will save £1.4 billion per year from its new restrictions on who gets the fuel allowance, taking into account an anticipated £370 million increase in Pension Credit expenditure.

The Government's calculations are based on an assumption of 95,000 additional Pension Credit applications, with each person receiving an average of £3,900 a year, but Policy in Practice says that if applications continue at the current rate, that number will be hit by mid-November. In addition, targeted take-up campaigns and the government's promise to honour Winter Fuel Payments for claims made until December 21 could mean the target will be "well and truly exceeded", cancelling out the £1.4 billion saving altogether.

The SSAC has asked the DWP to detail the current savings expected from reducing eligibility to the Winter Fuel Payment and how these would be reduced by different levels of additional Pension Credit take-up. It said this would provide a better explanation of how the costs and savings balance out and "enable a clearer assessment of whether the stated policy intent is likely to be achieved."

A government spokesperson said: "We are committed to supporting pensioners – with millions set to see their State Pension rise by up to £1,700 this parliament through our commitment to the triple lock. Over a million pensioners will still receive the Winter Fuel Payment, and our drive to boost Pension Credit take-up has already seen a 152 per cent increase in claims.

"Many others will also benefit from the £150 Warm Home Discount to help with energy bills over winter, while our extension of the Household Support Fund will help with the cost of food, heating and bills. In the longer term, we will bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible so that pensioner households receiving Housing Benefit also receive any Pension Credit to which they are entitled."

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