Thousands rush to claim pension credit amid winter fuel payment squeeze

PoliticsBusiness & Finance
7 Sep 2024 • 1:59 AM MYT
The Independent
The Independent

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Thousands of people have rushed to claim pension credit in the weeks since the Government announced it would limit the winter fuel payment to those on the benefit, new figures have shown.

The Department for Work and Pensions said it has received 38,500 pension credit claims in the last five weeks.

The rise in claims appears to begin after July 29, the date when Chancellor Rachel Reeves announced the winter fuel allowance for pensioners would be limited to only those claiming pension credit or other means-tested benefits.

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It represents a 115% increase in pension credit claims received by the department in the past five weeks compared to the five weeks before, when there were 17,900 claims.

Ms Reeves announced the squeeze as part of a series of measures aimed at filling what she called a £22 billion “black hole” in the public finances.

It is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million – most of whom claim pension credit – saving around £1.4 billion this year.

The move has provoked unease among some Labour backbenchers who said they feel unable to vote with the Government when it comes to the Commons on Tuesday.

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Rachael Maskell, Labour MP for York Central, has signalled she is willing to disobey her party’s order to vote for the measure.

Labour MP Neil Duncan-Jordan (Poole) said the decision would result in a “bureaucratic and unpopular means test” for older people, in a Commons motion which has received the backing of 26 MPs – 11 of whom are Labour parliamentarians.

Opposition MPs from the Conservatives and Liberal Democrats have also voiced concern about the plans.

As she confirmed the date when MPs would debate the measure, Commons Leader Lucy Powell said the Government has made “some really difficult decisions” that it “did not want to make”, but said it was “not afraid” to debate the cuts.