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Winter Fuel Payment update as new plan put forward to reverse change

September 3, 2024

Winter Fuel Payment Update Proposed to Reverse Change

Nearly half a million people have signed an online petition by Age UK urging the UK Government to reverse its decision to means-test Winter Fuel Payments. The charity began its campaign following Chancellor Rachel Reeves’s announcement at the end of July, with the legislation being expedited through parliament on August 22, bypassing any debate or vote. The winter fuel payment is a tax-free sum paid in November or December to anyone over state pension age to help with heating costs over the winter. It is worth between £100 to £300, depending on where you live and who you live with.

With the update, an estimated 10 million pensioners will lose out on the assistance unless they receive means-tested benefits such as Pension Credit. Age UK’s campaign called ‘Save the Winter Fuel Payment for struggling pensioners’ warns that the change will negatively impact older people who rely on the extra financial support to help cover the costs of higher bills during the winter. Ms. Reeves blamed a £22bn “black hole” in public finances for the decision to restrict the allowance.

Commons Leader Lucy Powell said she could not see a scenario in which Ms. Reeves would abandon her plan, and warned there could have been a “run on the pound” had the government not taken action on public finances. Liberal Democrat leader Sir Ed Davey joined the Conservatives in calling for a Commons vote on the matter, describing it as the government’s first big mistake.

The UK Government launched ‘Pension Credit Week of Action’ to encourage older people to check their eligibility for Pension Credit, which would give them access to Winter Fuel Payments. Up to 880,000 pensioners could be missing out on this cash boost worth on average up to £3,900 per year. Families, friends, and neighbors are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply.

How to check eligibility for Pension Credit:

  • Use the online Pension Credit calculator on GOV.UK to determine eligibility.
  • Call the Pension Credit helpline on 0800 99 1234 for expert help and advice.
  • Other organizations like Independent Age, Income Max, Citizens Advice, and Age UK can assist as well.

Financial support you may receive if eligible for Pension Credit:

  • 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 heating costs through the Warm Home Discount Scheme and Winter Fuel Payment
  • A discount on the Royal Mail redirection service if you are moving house

In May 2019, the law changed, impacting ‘mixed age couples,’ where one partner is of state pension age and the other is below it, making them ineligible for benefits until both partners are of state pension age. Use the Pension Credit calculator on GOV.UK with details of earnings, benefits, pensions, savings, and investments to determine the benefits you may receive. Start your application up to four months before reaching state pension age.

If you’re eligible for Pension Credit, you can claim online or through the Pension Credit helpline. It’s crucial to check eligibility and claim the support entitled to ensure financial assistance for older individuals who need it.