AROUND 780,000 pensioners are set to miss out on the Winter Fuel Payment this year despite being eligible, the Government has said.
The Department for Work and Pensions (DWP) quietly revealed last night it expects the cohort to lose out due to them not claiming Pension Credit.
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Ministers have made eligibility for the Winter Fuel Payment means-tested rather than everyone over state pension age qualifying.
The decision was made after the Chancellor Rachel Reeves admitted The Treasury was facing a giant £22billion black hole in its finances left by the previous Government.
But despite recent figures from the DWP revealing uptake for Pension Credit has doubled since the end of announcement in July, the Government has said it still estimates hundreds of thousands will miss out this year because they aren’t claiming the benefit.
In response to a Freedom of Information request last night, analysis from the DWP estimated 780,000 will lose out in total.
This factors in 100,000 who it believes will claim Pension Credit and qualify for this year’s Winter Fuel Payment.
The analysis also suggested than nine in 10 pensioners aged between 66 and 79 will lose their allowance and 83% over 80.
Meanwhile, it found that around 71% with a disability will miss out on the up to £300 payment.
In total, the Government expects around 10million who previously qualified for the Winter Fuel Payment will not this year after making it means-tested, the analysis said.
The DWP said: “The Government has followed its legal and statutory duties ahead of introducing these changes and will continue to do so.”
The revelations have reignited a row over the policy, which been criticised by both unions and the Tories as the Government tries to balance its books.
Conservative Party chairman Richard Fuller said: “At the start of this week, Labour MPs marched through the lobbies to cover up the impact of the winter fuel cuts which will slash support for many pensioners in their own constituencies.
“This shocking new data, sneaked out by the Government, now shows 780,000 people who should be entitled to the payment will lose out as will 1.6 million people with a disability.”
He called on Labour to “immediately” conduct and publish a full impact assessment of “this harmful policy”.
In 2017, Labour claimed Conservative plans to means-test the winter fuel allowance could lead to almost 4,000 deaths.
Pressed yesterday on whether an impact assessment of the policy would be published, Sir Keir told reporters travelling with him to Washington DC: “There isn’t a report on my desk which somehow we’re not showing, that I’m not showing, as simple as that.”
Sir Keir Starmer also denied means-testing the Winter Fuel Payment was part of a package of changes from his Government punishing pensioners.
Ministers have ruled out stripping pensioners of free bus passes at the next budget – set to be announced on October 30.
But fears have been raised that the single person council tax discount, which would impact widowers, could be ditched.
What is the Winter Fuel Payment?
Consumer reporter Sam Walker explains all you need to know about the payment.
The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.
Most who are eligible receive the payment automatically.
Those who qualify are usually told via a letter sent in October or November each year.
If you do meet the criteria but don’t automatically get the winter fuel payment, you will have to apply on the government’s website.
You’ll qualify for a Winter Fuel Payment this winter if the following apply:
- you were born on or before September 23, 1958
- you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
- you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:
- you live in Switzerland or a EEA country
- you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK
But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.
This is because the average winter temperature is higher than the warmest region of the UK.
You will also not qualify if you:
- are in hospital getting free treatment for more than a year
- need permission to enter the UK and your granted leave states that you can not claim public funds
- were in prison for the whole “qualifying week”
- lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
Payments are usually made between November and December, with some made up until the end of January the following year.
What is Pension Credit and how to apply
Pension Credit is available to people over the State Pension age, currently 66, and on a low income who live in England, Wales and Scotland.
It tops up your weekly income to £218.15 if you are single and £332.95 if you are in a couple.
Your income is worked out taking into account various elements including:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
The rules behind who qualifies for Pension Credit can be complicated, so the best thing to do is just check.
You can do this by using the Government’s Pension Credit calculator on its website.
Or, you can call the Pension Service helpline on 0800 99 1234 from 8am to 5pm Monday to Friday.
Those in Northern Ireland have to call the Pension Centre on 0808 100 6165 from 9am to 4pm Monday to Friday.
How much can you get?
There are two parts to the benefit, known as the guarantee credit and the savings credit, and pensioners can be eligible for one or both parts.
Here are the current rates for the tax year:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £218.15 a week if you’re single and £332.95 a week for married couples.
- Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.
You can also get additional Pension Credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
As an example, you can get either £66.29 a week or £76.79 a week for each child you’re responsible for.
How do I apply and how will I be paid?
You can start your application up to four months before you reach State Pension age.
You can make an application on the Government website or by ringing the Pension Credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
You can also get help with the application process through charities and non-profit organisations such as Independent Age and Age UK.
Pension Credit claims can be backdated by up to three months meaning, if eligible, your first payment could be a bumper one.
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