- Pension credit claims were up 44% between 29 July 2024 and 27 July 2025 compared with the same period a year earlier (Pension Credit applications and awards: August 2025 | GOV.UK)
- But claims have fallen by 16% since the end of March this year compared with the same period in 2024, marking a return to more stable levels since the surge that ensued after the government’s now infamous winter fuel payment announcement last July
- A huge 163,500 claims were not awarded between 29 July 2024 and 27 July 2025 – an 88% rise year-on-year
- The data shows there were also 12,100 outstanding claims at the end of the week starting 18 August 2025 – a fall of 73,500 from the peak in December 2024
Rachel Vahey, head of public policy at AJ Bell, comments:
“The government might think it has banished the winter fuel payment debacle by U-turning on its previous decision to remove it for all but the very poorest pensioners. But these figures lay bare the panic caused by the initial announcement.
“In the year following Rachel Reeves’ infamous declaration, only days after taking office at Number 11, pensioners swarmed to apply for pension credit and keep their winter fuel payment. The DWP received an astonishing 44% increase in applications between July 2024 and July 2025 compared to the previous year, having to work hard to process a staggering 344,700 pension credit claims during this period in total.
“The government U-turned earlier this summer on its original decision, meaning the winter fuel payment will now be paid to all pensioners and only clawed back for those with an income of more than £35,000. Rachel Reeves originally hoped to save around £1.4 billion by restricting winter fuel payments to pension credit recipients only, a measure it said was required to repair public finances.
“Some of that saving was always likely to be offset by the drive to ensure people claimed pension credit and, with an increase of 57,200 in successful claims between the chancellor’s announcement on 29 July 2024 and 27 July 2025, the net saving from the whole exercise is likely to be miniscule. Claims have crept lower in recent months, with a 16% drop between the end of March and August 2025 compared with the same period last year, but the original hope of a sizable saving could have already been reversed by both increased pension credit awards and the cost of processing additional claims.
“The silver lining in this whole debacle is that many more pensioners have been pushed into claiming pension credit and will therefore enjoy a better financial standard of living as a result. And that can only be good news for those who are struggling to make ends meet in light of soaring food inflation and a rising energy price cap.”
Source: AJ Bell, DWP.
Claiming pension credit
For those on low incomes, who are over state pension age, claiming pension credit can offer a valuable additional income top-up. If you live alone and have a weekly income of less than £227.10 (just over £11,800 a year) then you’ll be eligible for pension credit. The same applies to a couple with an income of £346.60 per week, equivalent to just over £18,000 a year.
If you can demonstrate your income is below that threshold then pension credit effectively tops you up to that level. For someone living on their own with an income of £217 a week, pension credit will provide an additional £10 a week to supplement their income, taking it up to the pension credit threshold. Your income includes your state pension, other private pensions, employment or self-employment earnings and most social security benefits.
Pension credit has historically been underclaimed, with many people not realising they may be entitled to the payments and failing to claim. Pension credit won’t be paid automatically, so you have to submit a claim through the DWP, which can be done online or over the phone. If you’re unsure whether to claim because you’re close to the income threshold, there’s no harm in submitting a claim – the worse that can happen is you find you’re not eligible.
