Claims for pension credit have soared by almost 150% since the Government announced plans to means test the winter fuel payment, figures show.
But just 42,500 applications have been approved over the same period – less than 5% of the 880,000 people the Government said were missing out on the benefit in July.
Some 150,000 applications for pension credit have been submitted in the 16 weeks since July 29, when Chancellor Rachel Reeves announced only those receiving the benefit would be eligible for winter fuel payments.
Ms Reeves said the move would save around £1.5 billion and was needed to help fill a £22 billion “black hole” in the public finances that Labour claims was left by the previous Conservative government.
But the number of approvals has risen by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100.
Age UK said it is “a massive disappointment” that so many pensioners are having their claims turned down, adding the figures show the Government is “struggling to keep up” with the number of applications.
Caroline Abrahams, charity director at Age UK, said: “The system was not designed to deal with so many applications all at once – a situation which is a direct result of the Government’s disastrous decision to severely ration the winter fuel payment with little notice.
“There’s still time for the Treasury to soften the blow on pensioners living on low and modest incomes before the worst consequences of its policy change play out this winter, but only just.”
The figures come as Britain endures a cold snap, with the Met Office having issuing cold health warnings for northern England and the Midlands on Tuesday.
The Government continues to urge pensioners to check if they are eligible for pension credit.
Those who apply before December 21 will receive backdated payments of both pension credit and the winter fuel allowance, and the Department for Work and Pensions has deployed 500 extra staff to handle claims for the benefit.
Pensions minister Emma Reynolds said: “We’re pleased to see more pensioners are now receiving pension credit and our staff are processing claims as quickly as possible.
“With December 21 approaching, my message is clear: check if you are eligible for pension credit and if you are then apply, as it unlocks a range of benefits including the winter fuel payment.”
Since the Chancellor’s announcement, the Government has spent around £250,000 on advertising relating to pension credit, a freedom of information request by investment managers Quilter Cheviot has found.
Rosie Hooper, a chartered financial planner at the company, said the figure was “surprising… given the importance of reaching those in need”.
Liberal Democrat Treasury spokesperson Daisy Cooper said the figures were a “damning indictment of the Government’s failure to protect pensioners this winter”.
She said: “Millions of vulnerable pensioners are still set to lose their winter fuel payment just as the cold weather bites.
“Ministers rushed through these unfair changes and now vulnerable pensioners are set to pay the price.
“We are now reaching the point of no return for the Government to recognise their mistake, scrap this unfair cut and avoid older people being forced to choose between heating and eating this winter.”
