The pensions minister has said that cutting the amount of time that backdated benefits can be claimed for is necessary - as many more people are set to apply for the assistance.
Many Britons are to take a financial hit when new benefits rules come into effect in October.
Speaking to the BBC, pensions minister Mike O'Brien said that the government's new policy of cutting the benefits backdating limit for new claims, from 12 months to just three, is necessary in order to offset the costs of simplifying the claims process.
It anticipates that thousands more people will apply for benefits in the future thanks to the changes, causing a potential drain on public finances. Under the new rules, applying for pension credit, council tax or housing benefits can be made through a single phone call under the new system - with no forms to fill in.
The government therefore imposed the backdating change due to the cost savings that will result from it. Official statistics suggest that the public purse will benefit by around £300 million over the next three years.
Mr O'Brien commented: "What we wanted to do was find the extra funding to introduce automatic payment with one phone call. We believe by 2010 this will lift 50,000 pensioners out of poverty and that's why we did it."
He added: "If we reduce the backdating from one year to three months we can cover the cost [of the new claims] at least for a period of time."
The new rules come into effect from October 6th.
