DWP minister gives update on Winter Fuel Payment Martin Lewis plan

DWP Minister Provides Winter Fuel Payment Update Following Martin Lewis’ Proposal

The pensions minister has cautioned that allocating winter fuel payments based on council tax bands would not be feasible, following a suggestion from financial expert Martin Lewis. Labour MP Rachael Maskell had posed a written question to Emma Reynolds, who expressed concerns that property values may not accurately reflect taxpayers’ incomes. The universal winter fuel payment has been replaced by an allowance for pensioners on means-tested benefits, such as pension credit and universal credit.

Reynolds stated the Government’s commitment to collaborating with external partners to encourage the uptake of pension credit. However, she refrained from specifying a target number for pension credit enrolment, despite a query from Democratic Unionist Party MP Gregory Campbell. The decision to restrict winter fuel payments to the most financially vulnerable pensioners was endorsed in a parliamentary vote, with Labour MP Maskell abstaining from the vote.

In response to Martin Lewis’ proposal to link allowances to council tax bands A to D, Reynolds highlighted that the Department for Work and Pensions lacks data on individuals’ council tax banding. She emphasised that council tax banding may not consistently reflect income levels, deferring taxation matters to the Treasury. Additionally, Maskell proposed exploring the establishment of a “fuel poverty prescription” by GPs to support individuals with cold-sensitive health conditions.

Reynolds affirmed the Government’s dedication to combating fuel poverty, outlining plans to invest £6.6 billion in clean heat and energy efficiency initiatives. The Household Support Fund will be augmented by an extra £500 million targeted at vulnerable individuals post-March 2025. With regards to pension credit uptake targets, Reynolds clarified that no specific goals have been set, with an emphasis on ensuring all eligible individuals claim their entitled benefits.

A Pension Credit Week of Action was launched to raise awareness and encourage pensioners to check their eligibility. A forthcoming national marketing campaign will focus on promoting pension credit applications before December 21, 2024, the deadline for backdated claims to receive winter fuel payments. This campaign underscores the Government’s efforts to ensure eligible pensioners access the financial support available to them.

By Neil Shaw, Assistant Editor (Money and Lifestyle) at Wales Online.