Nearly half a million people have signed an online petition from Age UK calling on the UK government to reverse its decision to means-test Winter Fuel Payments. The charity launched its campaign following Chancellor Rachel Reeves’ announcement in late July that the legislation was rushed through Parliament on 22 August, bypassing any debate or vote.
The winter fuel payment is a tax-free sum paid in November or December to everyone of pensionable age to help with winter heating bills. It’s worth between £100 and £300, depending on where you live and who you live with. But the update means an estimated 10 million pensioners will miss out on the help, unless they receive means-tested benefits such as Pension Credit.
Age UK’s ‘Save the Winter Fuel Payment for struggling pensioners’ campaign warns the change will have a negative impact on older people who rely on the extra financial support to cover the cost of higher bills over the winter. Ms Reeves blamed a £22bn “black hole” in the public finances for the decision to cap the allowance.
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Speaking to the BBC, party leader Lucy Powell said she could not envisage a scenario in which Ms Reeves would abandon her plan, warning that there could have been a “run on the pound” if the government had not taken action on the public finances. For money saving tips, sign up for our Money Newsletter here
She acknowledged that losing the payment would make things even harder for pensioners, but defended the government for taking “really tough decisions” such as targeting winter fuel payments. On Thursday, Liberal Democrat leader Sir Ed Davey joined the Conservatives in calling for a Commons vote on the issue, describing it as the government’s first major mistake.
On Monday 2 September, the UK government launched ‘Pension Credit Week of Action’, which aims to encourage older people to check their entitlement to Pension Credit, which would in turn give them access to Winter Fuel Payments. “Up to 880,000 pensioners could miss out on this cash boost of an average of £3,900 a year,” the campaign said. “Families, friends and neighbours are encouraged to contact retired relatives to encourage them to check their pension entitlement and apply.”
Pensioners with a weekly income of less than £218.15 for a single person or £332.95 for a couple are urged to use the DWP’s online calculator to determine whether they are eligible for payments. Pension Credit can be worth an average of £3,900 a year. Claims submitted before 21 December and later successful will receive a retrospective Winter Fuel Payment.
Martin Lewis, founder of MoneySavingExpert, who contributed to the campaign, said: “It is a national tragedy that almost a million eligible pensioners on low incomes who have paid contributions for years are still missing out on the vital financial lifeline of Pension Credit. A better name would be ‘State Pension Top Up’.
“So whatever your age, take a moment to understand how it works so we can all make sure the message gets out to every nook and cranny of grannies (and granddads too). Especially as the government has just ended Winter Fuel Benefits eligibility for millions of people, but if you claim Pension Credit you’ll still get it.
“While for most single pensioners their total weekly income, including savings, needs to be under £218 (retired couples under £333) to have a strong chance of qualifying, my rule of thumb is that you should take a few minutes to check even with a weekly income of up to £235 (retired couples £350), as there is still a chance that some may qualify.
“Pension Credit can pay out £1,000 a year, but even if it only gives you £1,000, claim it anyway! Because once you receive it, it’s a gateway benefit that opens the door to other entitlements – including council tax discounts, free TV licences (if you’re over 75), dental and optical support and more.”
How to check if you qualify for pension credit
You can quickly check whether you or your friends and family are eligible by using the online Pension Credit calculator on GOV.UK here . It will give you an estimate of what you could receive, the Daily Record reports.
The Pension Credit helpline can also be used directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday. Expert help and advice is also available via:
More help if you qualify for pension credit
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Housing benefit if you rent the home you live in
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Mortgage interest support if you own the home you live in
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Discount on municipal tax
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Free TV license if you are 75 or older
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Help with NHS dental treatment, glasses and transport costs for hospital appointments
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Help with your heating costs through the Warm Home Discount Scheme and Winter Fuel Payment
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Discount on Royal Mail forwarding service if you are moving house
Mixed-age older couples and pension credit
In May 2019, the law was changed to mean that a ‘mixed-age couple’ (a couple where one partner is of state pension age and the other is younger) is considered a ‘working’ couple when checking eligibility for income-related benefits.
This means that they cannot claim pension credit or pensionable housing benefit until they have both reached state pension age. Before this DWP change, a mixed age couple could qualify for the more generous state pension age benefits if only one of them had reached the right age.
How to use the Pension Credit Calculator
To use the calculator on GOV.UK you will need the following information:
You will also need this information for your partner, if you have one. You will be asked a series of questions with multiple choice answer options.
This includes:
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Your date of birth
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Your residential status
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Where in the UK you live
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Whether you are registered blind
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What benefits you are currently receiving
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How much you receive each week for any benefits you receive
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Whether someone receives a caregiver allowance to care for you
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How much you receive per week from pension – AOW, private and company pensions
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All income from employment
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Any savings, investments or bonds you have
Once you have answered these questions, a screen will appear showing your answers, so you can go back and change any answers before submitting them. The Pension Credit calculator will then show you how much benefit you can receive each week.
Then all you need to do is click on the link to the application page, where you will find out exactly what you will get from the DWP, including access to other financial support.
There is also an option to print out the answers you provide using the calculator, so you can complete the application form more quickly without having to look up the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you receive all the financial support you are entitled to.
For whom is the Pension Credit Calculator not useful?
You cannot use the calculator if you or your partner:
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postpone your AOW benefit
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own more than one home
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are self-employed
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have housing costs (such as service charges or rent from the Crown) that are neither mortgage costs nor rent that fall under the Rent Allowance
How to file a claim
You can apply up to four months before your retirement age. You can apply at any time after your retirement age, but your application can only be backdated by three months. This means that you can get up to three months of pension credit with your first payment if you were eligible during that period. If you are applying retrospectively, you will need details of your income, savings and investments on the date you want your application to start.
What do you need:
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your citizen service number
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information about your income, savings and investments
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your bank account details, if you submit a request by telephone or post
Apply online
You can use the online service if:
To check if you are entitled, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to work out how much you could get.