Pension credit application processing times peaked at 87 working days in December 2024, significantly above the Department for Work and Pensions (DWP) 50-working-day target, according to a freedom of information (FOI) request from Quilter.

These delays coincided with a “substantial” surge in applications, which Quilter suggested were due to changes to the winter fuel payment that restricted eligibility to those receiving pension credit or other means-tested benefits.

In particular, the company explained that December marked a “crunch” point as it was the final window to submit claims that could still be backdated to meet the cut-off for winter support.

However, the government announced earlier this week (21 May) that it would widen the eligibility criteria for the winter fuel payment and would change the threshold to allow more pensioners to qualify again.

According to official DWP data, around 235,000 pension credit claims were received between 29 July 2024 and 23 February 2025, representing an 81 per cent increase on the same period the year before.

Additionally, DWP’s latest annual report showed that 77.7 per cent of pension credit claims were processed within the 50-day target in 2023/24.

However, Quilter suggested that this figure is likely to drop for the 2024/25 tax year due to the increase in claims.

The government’s policy to cut winter fuel payments was unpopular with the public, as a poll from YouGov suggested that 59 per cent of people opposed the cuts, with 78 per cent of these respondents being 55 or over.

Quilter head of retirement analysis, Jon Greer, noted it was “encouraging” that awareness of pension credit is increasing, but argued that the system must be equipped to manage the consequences of policy decisions.

“Processing delays of up to 87 working days are simply too long – especially when low-income pensioners rely on this support to heat their homes during winter,” he added.

"The government’s aim to better target assistance is understandable, but the administrative infrastructure has failed to keep pace.

“Keir Starmer’s indication... that the government may revisit the eligibility criteria for the winter fuel payment at Prime Minister's Questions marks a notable shift in tone, and it’s one that reflects the political sensitivity of recent changes.

“The original decision to restrict the payment to pensioners receiving pension credit may have saved the HM Treasury money, but it has created confusion and left many vulnerable people behind.”

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