New figures obtained via a Freedom of Information request by Quilter, the pension provider and financial adviser, reveal that pension credit application processing times peaked at 87 working days in December 2024, significantly above the Department for Work and Pensions’ (DWP) 50-working-day target.
The delays coincided with a substantial surge in applications, prompted by controversial changes to the winter fuel payment which restricted eligibility to those in receipt of pension credit or other means-tested benefits. December marked a crunch point as it was the final window to submit claims that could still be backdated to meet the cut off for winter support.
However, yesterday the government announced that it would widen the eligibility criteria for the winter fuel payment and would change the threshold to allow more pensioners to qualify again.
According to official DWP data, between 29 July 2024 and 23 February 2025, around 235,000 pension credit claims were received. This represents an 81% increase on the same period the year before. These figures reflect the sharp rise in claimants attempting to qualify for the winter fuel payment top-up.
In the DWP’s latest annual report, 77.7% of pension credit claims were processed within the 50-day target in 2023/24. However, this figure is likely to drop for the 2024/25 tax year due to the increase in claims.
The government’s policy shift has proved unpopular with the public. Polling from YouGov suggests that 59% of people oppose the cuts to winter fuel payments, including 78% of those aged 55 and over.
Quilter encourages those who may be eligible to apply for pension credit, even if they missed last year’s deadline, as it unlocks access to a broad range of support including council tax reductions, free TV licences for over-75s, and future cost-of-living payments.
Jon Greer, head of retirement policy at Quilter, comments:
“It’s encouraging that awareness of pension credit is increasing, but the system must be equipped to manage the consequences of policy decisions. Processing delays of up to 87 working days are simply too long – especially when low-income pensioners rely on this support to heat their homes during winter.
“The government’s aim to better target assistance is understandable, but the administrative infrastructure has failed to keep pace. As a result, some of the most vulnerable may have been left out in the cold, quite literally.
“Keir Starmer’s indication yesterday that the government may revisit the eligibility criteria for the winter fuel payment at Prime Minister’s Questions marks a notable shift in tone, and it’s one that reflects the political sensitivity of recent changes. The original decision to restrict the payment to pensioners receiving pension credit may have saved the Treasury money, but it has created confusion and left many vulnerable people behind.”
