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Start your plan5 other ways to get support as winter fuel changes spark pension credit surge
Pension credit applications have soared by 145% since the government announced means testing for winter fuel payments
Pension credit is a means-tested benefit that boosts the income of retirees on low incomes, providing at least £218.15 a week for single pensioners and £332.95 for couples.
July’s announcement that winter fuel payments will be means-tested for the first time has driven a 145% rise in applications for pension credit. However, with a backlog of 53,400 claims and only half of processed applications approved, many pensioners are at risk of losing vital support.
Here, Which? highlights the full range of grants that are available to help with heating costs, and explains what to do if your pension credit claim is rejected.
What's happening to pension credit claims?
As well as boosting the income of low-income retirees, pension credit acts as a gateway benefit. This means it can unlock additional support, including help with housing costs such as rent and council tax, as well as energy bills.
1.4 million pensioners receive pension credit, but an estimated 880,000 eligible households are missing out, according to the latest figures.
Since April 2024, the Department for Work and Pensions (DWP) has received 215,200 claims, of which 161,800 have been processed. However, only 81,000 were approved, meaning nearly half of claims were unsuccessful, and 53,400 are still awaiting review.
Applications surged following the government’s Winter Fuel Payment announcement on 29 July 2024, with 150,000 of these claims made in the 16 weeks that followed – a 145% increase compared to the previous 16 weeks.
- Find out more: pension credit explained
What to do if your pension credit application is rejected
If your pension credit application is rejected, you can reapply at any time, especially if your circumstances change – for example, if you start claiming a disability benefit, lose a partner or spend your savings.
If you disagree with a rejection, you can ask the DWP for a written statement of reasons explaining the decision.
If you believe the decision is incorrect, you have the right to request a 'mandatory reconsideration', which is free and asks the DWP to review your application. This has to be done within one month.
Once the decision-maker has reconsidered, they’ll send you a mandatory reconsideration notice, which includes information about your right to appeal.
- Find out more: 8 things to know about pension credit
How to secure this year's Winter Fuel Payment
The Winter Fuel Payment is worth £200 or £300, depending on your age, and is designed to help with heating costs during the colder months. Since the government's announcement in July, to qualify for the Winter Fuel Payment, you must receive pension credit or other qualifying means-tested benefits.
If you’re eligible for pension credit, you need to apply before 21 December to ensure your claim can be backdated, making you eligible for this year’s Winter Fuel Payment.
Those already receiving pension credit or certain other benefits will usually get the Winter Fuel payment automatically. If you’re newly applying, the payment will follow once your claim is approved.
Payments are typically made between November and December.
Five other ways pensioners can get help with heating costs
If you’re struggling to keep up with heating bills, there are several schemes and grants available to help you manage rising costs. Some of these are also means-tested.
These options can provide financial support for energy bills, home upgrades and more.
1. Warm Home Discount
What it is: A £150 discount on electricity bills for households struggling with energy costs.
Who's eligible: In England and Wales, you qualify if you either receive the guarantee credit element of pension credit or are on a low income with high energy costs.
The scheme works differently in Scotland, where some households must apply directly to their supplier. In Scotland, eligibility includes those who receive the guarantee credit element of pension credit or those on a low income who meet their energy supplier’s criteria for the scheme.
The scheme is not available in Northern Ireland.
How to claim: Most eligible households will be contacted automatically. In Scotland, broader group households must apply directly to their supplier.
- Find out more: how to get the Warm Home Discount
2. Cold Weather Payment
What it is: The Cold Weather Payment helps households in England, Wales, and Northern Ireland cover extra heating costs when temperatures are extremely low. These payments are made when the average temperature is 0°C or below for seven consecutive days.
You’ll receive £25 for each seven-day period with temperatures below 0°C, between 1 November and 31 March.
Who's eligible: You may qualify if you receive pension credit, income support, income-based jobseeker’s allowance, income-related employment and support allowance, universal credit, or support for mortgage interest.
How to claim: Payments are made automatically into the same bank account where you receive your benefits within 14 days of the cold spell.
- Find out more: how to get the Cold Weather Payment
3. Winter Heating Payment
What it is: The Winter Heating Payment helps qualifying households in Scotland with the costs of heating. Unlike the Cold Weather Payment, this is paid automatically regardless of temperature and is worth £58.75 this winter.
Who’s eligible: Eligibility is the same as the Cold Weather Payment in England and Wales. You must be over the state pension age and receiving a qualifying benefit, such as pension credit.
How to claim: Payments are made automatically between December and February. You’ll receive a letter from Social Security Scotland before the payment is made. If you think you qualify but haven’t received the payment, you can contact Social Security Scotland to request it.
- Find out more: how to get the Winter Heating Payment
4. Energy Company Obligation
What it is: The Energy Company Obligation (ECO) requires energy suppliers to install energy-saving measures, such as insulation or replacement boilers, in homes across Great Britain. The support provided can cover the full cost.
Who’s eligible: Homeowners and private tenants receiving certain benefits, such as universal credit, pension credit, or income support, may qualify. Eligibility depends on the energy efficiency of the home and the household’s circumstances.
How to claim: Contact your energy supplier or local council to see if they participate in the ECO scheme.
- Find out more: Energy Company Obligation explained
5. Boiler Upgrade Scheme
What it is: A grant to help homeowners in England and Wales replace gas or oil heating with low-carbon alternatives such as heat pumps and biomass boilers.
Who’s eligible: Homeowners and private landlords with existing gas or oil heating systems. A valid Energy Performance Certificate is required, and biomass boilers are limited to rural areas off the gas grid. New-build properties are excluded unless they are self-builds.
How to claim: A registered installer applies on your behalf, deducting £7,500 for heat pumps or £5,000 for biomass boilers from the cost.
- Find out more: how to apply for the Boiler Upgrade Scheme
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