The annual Winter Fuel Payment of up to £300 is now no longer available to some 9.2 million older people, following a policy change last summer
The Department for Work and Pensions (DWP) has clarified why it cannot expand the eligibility criteria for Winter Fuel Payments. Following a policy shift last summer, approximately 9.2 million older individuals no longer qualify for the annual heating allowance of up to £300 as they do not receive a qualifying means-tested benefit such as Pension Credit.
In response to Conservative MP Wendy Morton’s query about the “assessment of the potential merits of increasing the eligibility threshold for the Winter Fuel Payment”, DWP Minister for Social Security and Disabilities Sir Stephen Timms stated that expanding the eligibility threshold would “effectively mean raising the prescribed rates of Pension Credit”.
The DWP estimates that around 760,000 people are eligible for Pension Credit – which averages over £4,200 annually – but are not claiming it. Sir Stephen explained the reasons behind the inability to broaden Winter Fuel Payment eligibility, saying: “The Government has had to make hard choices to bring the public finances back under control. Linking Winter Fuel Payment eligibility to Pension Credit and other means tested benefits ensures that the least well-off pensioners still receive the help they need.”
He added that this approach also allows for automatic payment to eligible households without requiring them to claim or provide details of their income, capital, and personal circumstances, reports the Daily Record. He explained: “Increasing the eligibility threshold for the Winter Fuel Payment would effectively mean raising the prescribed rates of Pension Credit.”
He added: “Raising the level of the single person’s standard minimum guarantee in Pension Credit so that it matches or exceeds the full rate of the new State Pension to allow entitlement to the Winter Fuel Payment would draw more pensioners into means testing; thus undermining the rationale for the new State Pension – the full rate of which is set at a level higher than the Pension Credit standard minimum guarantee for a single person.
“The primary purpose of Pension Credit is to provide poorer pensioners with a guaranteed income level, and we know there are eligible pensioners who aren’t claiming Pension Credit. This is why, since September, we have been running the biggest ever Pension Credit take-up campaign. We want to ensure as many people as possible have access to Pension Credit and the other support it leads to.”
Many senior citizens mistakenly believe that their savings or property ownership disqualifies them from means-tested benefits. These benefits can offer assistance with housing costs, heating bills, and Council Tax.
Even a modest award of £1 per week can unlock additional support. Here’s a brief guide to the benefit, including eligibility criteria, application process, potential amounts, and where to seek help with form completion.
Who is eligible for Pension Credit?
Pension Credit comes in two forms – Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age (currently 66).
Your weekly income should also fall below the UK Government’s stipulated minimum living amount, which stands at £218.15 for single individuals and £332.95 for couples. These figures may increase if you’re disabled, a carer, or have specific housing costs.
Guarantee Credit aims to supplement your weekly income to a certain level. The exact amount depends on your circumstances, such as whether you’re disabled or a carer, or have particular housing costs.
Savings Credit can provide an additional sum. The precise amount you’ll receive hinges on your income and savings, including assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Senior citizens, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator available on GOV.UK.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to lodge a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday. Expert guidance and advice is also accessible from: More details about how to claim Pension Credit can be found on GOV.UK here.