DWP urged to ‘think again’ about means-testing Winter Fuel Payments for millions of pensioners
The Department for Work and Pensions (DWP) have been accused of ‘negligently underestimating’ how many older people will “fall through the cracks” over the colder months because they are no longer entitled to Winter Fuel Payments. Shadow work and pensions secretary Helen Whately also urged DWP ministers to press Chancellor Rachel Reeves to “think again” about means-testing the annual heating bill help.
From this winter, only people on means-tested benefits such as Pension Credit, Tax Credits (with an annual award of at least £26), or Universal Credit (for mixed age couples), will receive a payment of up to £300. Over 10million pensioners will miss out on the extra financial support, including 850,000 in Scotland, under the Labour Government’s plan to save £1.4billion during the 2024/25 tax year.
READ MORE: People on New State Pension due up to £921 each month from next April
The UK Government has insisted the move is necessary to help plug a “£22 billion black hole” in the public finances inherited from the Conservatives.
Last month, the Social Security Advisory Committee (SSAC) said the savings from limiting the Winter Fuel Payments to only the poorest pensioners are unclear and could be outdone by a rise in those claiming Pension Credit, which is worth an average of £3,900 each year. The SSAC, which provides statutory advice to ministers on benefits, also criticised the UK Government for not providing an impact assessment of its plans before they were brought into law.
During an urgent question on Tuesday, Pensions Minister Emma Reynolds apologised to the Commons for the delay in the Government replying to concerns raised by the SSAC and said a response should be issued this week.
For the Conservatives, Ms Whately said: “This Government made a choice to take away the Winter Fuel Payment from 10m pensioners this winter and to rely on the notoriously underclaimed Pension Credit as a system of means-testing it.
“This choice will make life harder for pensioners across the country. It will see 750,000 of the poorest pensioners miss out on much-needed help with the cost of heating and, according to the party opposite’s own research, could lead to 4,000 additional deaths this winter.
“The Government knows this, that’s why they haven’t done an impact assessment and perhaps that’s why after seven weeks they still haven’t responded to the concerns of their own advisory committee.”
Ms Whately added: “Does she accept that her Government has got this wrong? Does she recognise that they have negligently underestimated how many people will fall through the cracks? I suspect that deep down that she is worried, as I am, about pensioners who can’t afford to heat their homes.”
Ms Whately then urged the Pensions Minister to “go back to her Chancellor one more time and try and make her think again”.
Ms Reynolds replied: “I do apologise for the delay in responding to the committee’s letter. It is regrettable. The initial delay was because we were waiting for the OBR (Office for Budget Responsibility) to come forward with their costings of the policy.
“And then there was another unexpected delay.”
The minister also said the Government has done “everything in line” with the duty to provide an equality analysis of the decision.
Ms Reynolds noted Ms Whately had not apologised for the previous Tory administration’s record, adding: “We didn’t want to take the decision to means-test Winter Fuel Payments but we’ve had to do this, to take some difficult decisions, in order to clear up the mess, to tackle the fiscal inheritance and start rebuilding our public services, which pensioners across the country and many, many others rely on.”
Independent MP Richard Burgon also urged ministers to “think again” on the policy, as he said the cut would save around 0.1 per cent of Government spending.
Mr Burgon, who lost the Labour whip in July for backing an SNP motion on welfare policy, said: “On this occasion I do believe we got it wrong, so could the Government rethink on this issue?”
Liberal Democrat work and pensions spokesperson Steve Darling asked the UK Government to extend the deadline to apply for Pension Credit beyond December 21, in light of the “unexpected delays” .
Ms Reynolds replied: “I’m afraid I can’t commit to extending the deadline.”
She added: “Those claims can be backdated by three months, and anyone who is eligible for Pension Credit within the qualifying week will also be passported to other benefits such as the Winter Fuel Payment.”
The DWP Minister also urged loved ones to help older family members check if they are eligible for Pension Credit.
She said: “We have run several campaigns, the latest of which was launched recently on radio and TV and in print media, to urge those who may be eligible to apply, and to urge their loved ones to encourage them and help them to apply.
“We have also asked officials to see how we can improve the form to make it easier, but more than 90 pe cent of claims are now made online. Pensioners can get help either from a loved one or from charities and local authorities, which are helping to ensure that they get the support that they deserve.”
Despite the DWP’s Pension Credit take-up campaign, some 760,000 pensioners entitled to the extra financial support are not claiming the benefit.
Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax.
An award of just £1 per week is enough to unlock other support.
Below is an overview of the benefit, including who should check eligibility, how to go about it, how much you could get and where to get help filling in the form.
Who can claim Pension Credit?
There are two types of Pension Credit - Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.
This is £218.15 for a single person and £332.95 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs.
You can only get Savings Credit if:
you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you receive from DWP?
Guarantee Credit tops up your weekly income to:
£218.15 for a single person
£332.95 for a couple (married, in a civil partnership or cohabiting)
You might be able to get more than this if you're disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
£17.01 a week for a single person
£19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
Housing Benefit if you rent the property you live in
Support for Mortgage Interest if you own the property you live in
Council Tax discount
Free TV licence if you are aged 75 or over
Help with NHS dental treatment, glasses and transport costs for hospital appointments
Help with your heating costs through the Warm Home Discount Scheme or Winter Fuel Payments
A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
earnings, benefits and pensions
savings and investments
You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.
This includes:
Your date of birth
Your residential status
Where in the UK you live
Whether you are registered blind
Which benefits you currently receive
How much you receive each week for any benefits you get
Whether someone is paid Carer’s Allowance to look after you
How much you get each week from pensions - State Pension, private and work pensions
Any employment earnings
Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
are deferring your State Pension
own more than one property
are self employed
have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
your National Insurance number
information about your income, savings and investments
your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
you have already claimed your State Pension
there are no children or young people included in your claim
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
