Pension credit claims soar as chancellor refuses to reverse winter fuel payment cut
Applications for pension credit hit nearly 75,000 in the eight weeks since the new chancellor announced the winter fuel payment for pensioners would be means-tested for the first time.
Figures released on Friday by the Department for Work and Pensions figures showed there were around 74,400 pension credit claims in the eight weeks since 29 July.
This is up from 29,500 claims in the eight weeks before the announcement.
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But in the seven days beginning on 16 September, the government received 11,800 claims – down from 13,400 the week before.
The new Labour government announced in July that only elderly people in receipt of benefits such as pension credit and universal credit would receive help worth up to £300 with their fuel bills over winter, whereas previously it was universal.
Labour has sought to justify its decision by saying it needs to stabilise the economy after the Tories left behind a £22bn financial “black hole”.
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The leader of Unite has urged the government to reverse its decision to cut pensioners’ winter fuel allowance, calling the policy
Ministers launched vast efforts to boost take-up of pension credit among eligible pensioners, with the Work and Pensions Secretary Liz Kendall saying “thousands” were missing out on the payment of an average of £3,900 per year.
The government has come under fire from all quarters for the cut, with Labour members at the party’s conference voting in favour of a motion calling for ministers to reverse their cut to the winter fuel allowance, in an embarrassing blow to the prime minister.
The motion was put forward by the trade union Unite, which has accused the government of embarking on “austerity mark two”.
Sharon Graham, the general secretary of Unite and outspoken critic of Sir Keir, moved the proposal by quoting Labour’s election-winning post-war manifesto, which she said was “one of hope”.
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The government was defeated on a vote at the Labour Party conference – on whether to reverse its decision to end winter fuel payments for pensioners.
She added: “I do not understand how our new Labour government can cut the winter fuel allowance for pensioners and leave the super-rich untouched.
“This is not what people voted for. It is the wrong decision and needs to be reversed.”
But Ms Kendall defended the much-criticised cut to the benefit, claiming “this Labour government has done more to help the poorest pensioners in the last two months than the Tories did in 14 years”.
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Chancellor Rachel Reeves has also held firm, insisting at the party conference that the policy would not be changed.
She told a fringe event on Tuesday that parliament had already voted on restricting winter fuel payments, and that “there was overwhelming support” for it.
SNP Westminster Leader Stephen Flynn said the prime minister “must finally listen to voters, admit he got it wrong, and U-turn on the Labour government’s damaging cuts to the Winter Fuel Payment for millions of pensioners”.
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But a Labour spokesperson said: “The Tories wrecked our economy and left a £22bn black hole in the public finances. They made commitments they couldn’t pay for, covered it up and ran away.
“The Labour Party was elected on our manifesto commitment to sound fiscal rules, economic growth is our primary mission and we will take the tough decisions now to rebuild Britain and make every part of the country better off.”
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A government spokesperson said: “We are committed to supporting pensioners, with millions set to see their state pension rise by £1,700 this parliament through our commitment to the triple lock.
“Given the dire state of the public finances we have inherited, it’s right we target support to those who need it most.
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“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% 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.”
Kemi Badenoch has denied the Conservatives would consider means testing the pensions triple lock, as she accused her opponents of trying to “scare people”.
The Tory leader sought to clarify remarks she made on LBC on Thursday evening, which were interpreted as her leaving the door open to means testing the system that guarantees the state pension rises in line with average earnings, inflation or 2.5% – whichever is highest.
The Conservatives have long championed the triple lock – introduced by former chancellor George Osborne during the coalition government – but some senior Conservatives have recently hinted that it might not be sustainable in the long term.
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Ms Badenoch told LBC her party would look at “means testing” – something she said “we don’t do properly here” – in response to a question about the triple lock.
Labour, the Liberal Democrats and Reform UK were quick to seize on Ms Badenoch’s comments, claiming the Tory leader would “cut your state pension”.
However, the Tory leader posted on X that she was referring to means testing generally rather than with specific regards to the triple lock.
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From criticising “excessive” maternity pay to describing herself as becoming “working class” while working at McDonald’s – not to mention slamming sandwiches as “not real food” (compared to a desktop steak), Kemi Badenoch is never one to shy away from controversy.
Supporters argue this straight-talking directness is a key part of her appeal. But it also gets her into trouble.
On an LBC phone-in last night she was asked what she wanted to do for younger voters fed up with the triple lock on state pensions (which means they go up every year by 2.5%, inflation, or average earnings – whichever is higher).
Her response was to suggest “we’re going to look at means testing” as “we don’t have a system that knows who should get what”.
The idea that the Tories might not be religiously committed to a universal triple lock has led to a political pile-on.
It’s unclear what exactly means testing the triple lock would work in practice; it’s clearly not a developed policy yet (indeed, Ms Badenoch argues the party shouldn’t be focused on specific policies so soon after their drubbing at the last election).
Politicians on all sides have criticised the triple lock before, with the shadow chancellor Mel Stride previously describing it as “unsustainable” and the new pensions minister Torsten Bell as “messy” in his previous role at the Resolution Foundation thinktank.
But Labour are adamant that they would never abandon the triple lock.
Somehow, the Conservative attack on the government’s treatment of pensioners over the winter fuel allowance has become a big question mark over the Tories’ commitment to a promise which has become totemic with many of their core voters.
“Labour punished poor pensioners, snatching away winter fuel payments due to poor means testing,” she said.
“We need better mechanisms, not proxies like pension credit or free school meals. So why are Labour, Reform, and Lib Dems pretending we’re cancelling the triple lock? They’re scared.”
She continued: “In the clip attached, I say ‘no’ to looking at the triple lock.
“But we do need to deliver better means testing. Big tech and supermarkets know more than the government about its citizens. It’s time to change the system for the better. Let’s do this for the next generation.”
On Friday morning, Nigel Huddleston, the Tory party’s co-chair, defended Ms Badenoch and said means testing was very different to scrapping it all together.
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Speaking to Matt Barbet on Sky News Breakfast, Mr Huddleston said: “What Kemi said yesterday in answer to the triple lock… the first word out of her mouth was ‘no’.
“What she talked about yesterday in an interview was about means testing, and this is something she has commented on before, in the context of, for example, winter fuel.
“And she said, look, millionaires probably shouldn’t get it. Millionaires, not millions of pensioners – millionaires.
“We probably do need to look at means testing at some of those levels, and I don’t think many viewers would disagree with that.”
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