Pensioners Urged to Check Eligibility for Winter Fuel Allowance as Universal Payments Scrapped
The government is launching a campaign to inform pensioners about changes to the winter fuel allowance, urging eligible individuals to apply for the benefit before the December deadline.
Last month, Chancellor Rachel Reeves announced that the tax-free benefit, which assists older individuals with higher heating costs during the colder months, would now be limited to those on pension credit. This surprise move was made in an effort to address a £22 billion deficit in the public finances, which the Labour party has accused the previous Conservative government of concealing during their time in office.
With the new government now in power, there is concern that hundreds of thousands of eligible pensioners have yet to claim the winter fuel allowance. Previously, this benefit was available to all individuals above state pension age, but under the new rules, it will only be provided to those who are receiving pension credit or other means-tested support. As a result, the number of people entitled to the money will decrease from 11.4 million to just 1.5 million.
The winter fuel payment is £200 for households where all recipients are under 80 and £300 for those over 80. While approximately 1.4 million pensioners are already receiving pension credit, there are an estimated 880,000 eligible households that have yet to claim, according to the Department for Work and Pensions.
The government’s awareness campaign aims to identify and assist these households in applying for pension credit by the December 21st deadline, which is the last day to make a backdated claim in order to receive the winter fuel payment. The campaign will address common misconceptions that may prevent individuals from applying, such as the belief that having savings, a pension, or owning a home disqualifies them from receiving pension credit. More information on how to apply for pension credit can be found on the government’s “How to Claim” page.
This announcement comes as experts warn of a potential £146 increase in the average household energy bill in October, the latest surge in prices since the global energy crisis triggered by the Russian invasion of Ukraine. Defending the cuts, Ms. Reeves emphasized the dire state of the public finances inherited from the previous government and the need to make difficult decisions. She also noted that the government is continuing to support pensioners by maintaining the triple lock.
However, Laura Trott, the shadow chief secretary to the Treasury, countered that the new policy would only increase pensioner poverty. She accused the government of giving in to union demands in recent strike negotiations and called for the publication of the internal impact assessment of the policy.
As the government’s awareness campaign begins, eligible pensioners are encouraged to apply for pension credit and claim their winter fuel allowance before the December deadline.
