More than 270,000 pensioners have been refused Pension Credit after putting forward a claim over the last five years, according to a Freedom of Information (FoI) request.
Research conducted by wealth management firm Quilter suggests that thousands of state pensioners are likely to miss out on the Winter Fuel Payment as a result.
Yesterday (September 10), the Labour Government was successful in voting through a motion in the House of Commons to means-test the energy bill benefit which is worth up to £300.
In July, Chancellor Rachel Reeves confirmed the administration's intention to link eligibility for the allowance to Pension Credit to fill the £22billion "black hole" in the public finances.
Pension Credit is a benefit payment administered by the Department for Work and Pensions (DWP) which is reserved for those of state pension age who are on low income.
Campaigners, charities and even Labour MPs have came out against the proposal due to concerns over the potential impact in exacerbating fuel poverty among older households.
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MPs have voted to means-test the Winter Fuel Payment GETTY/PA Based on DWP data, from the 2019/20 tax year up to July 2024, the Government received a total of 848,973 Pension Credit claims from older people.
Over the period, only 572,565 claims out of this sum were awarded were awarded which means only around two-thirds of claims were successful over the period.
During the 2022/23 tax year, the DWP reported a 116 per cent rise in the number of people claiming Pension Credit compared to the year before.
This was primarily due to to an awareness campaign rolled out by the Government to raise the number of applicants so households could access cost of living support.
Following Reeves' decision to means-test the pensioner benefit, another rollout campaign has been implemented by the Government in order to reach out to the most financially vulnerable.
Jon Greer, head of retirement policy at Quilter, warned Labour's "difficult decisions" will likely impacted the poorest members of Britain's society.
He explained: "Low-income pensioners, who might just miss out on qualifying for pension credit and, consequently now, the winter fuel payment, are particularly at risk despite not being wealthy.
“Another worry about the new policy is that many pensioners may still be unaware of their eligibility for Pension Credit.
"It is evident that when the Government actively promotes pension credit, there is a noticeable increase in the number of applicants, which is positive.
"However, with a third of pensioners who apply for Pension Credit being refused, there is considerable confusion over who is eligible."
LATEST DEVELOPMENTS:
Rachel Reeves confirmed the Winter Fuel Payment would be means-tested earlier this year
PAA Pension Credit claimant's weekly income has to be below £218.15 if they are single, or £332.95 if they are in a couple. Anyone who has disability or caring responsibilities could still qualify with a slightly higher income
Once a claimant has savings and investments over £10,000, each £500 above this amount counts as £1 in additional income per week when calculating eligibility.
A Government spokesperson told GB News: "This Government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.
“We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.
“In these circumstances it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments.”
