The Department for Work and Pensions (DWP) has clarified its position on Winter Fuel Payment eligibility after changes by Chancellor Rachel Reeves sparked a national outcry. After rules were amended last summer, 9.2 million elderly people find themselves ineligible for the annual heating aid of up to £300 as they do not meet the criteria for means-tested benefits such as Pension Credit.
Addressing Tory MP Wendy Morton’s question on potentially increasing the threshold for Winter Fuel Payments, DWP’s Sir Stephen Timms, Minister for Social Security and Disabilities, argued that widening access would “effectively mean raising the prescribed rates of Pension Credit”. According to DWP, some 760,000 people could claim an average of over £4,200 per year through Pension Credit but have yet to do so.
Sir Stephen cited tough fiscal decisions to improve public finances as the reason for restricting Winter Fuel Payment access. He said: “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 also mentioned that this policy ensures direct payments to those eligible without further action from them, reports the Daily Record.
He elaborated: “Increasing the eligibility threshold for the Winter Fuel Payment would effectively mean raising the prescribed rates of Pension Credit.”
He further commented: “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.”
A common misconception among elderly citizens is that having savings or owning property disqualifies them from receiving means-tested benefits. However, these benefits can help with housing costs, heating bills, and Council Tax.
Even a small Pension Credit award of £1 per week can lead to additional support. Below is a concise guide on this benefit, covering how to determine your eligibility, how the application process works, what amounts you might expect, and where to find assistance in completing forms.
Who qualifies for Pension Credit?
Pension Credit is available in two forms – Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must have reached the State Pension age, which is currently 66.
Your weekly income should also be less than the UK Government’s specified minimum living amount, currently set at £218.15 for single people and £332.95 for couples. These amounts may be higher if you’re disabled, a carer, or have certain housing costs.
Guarantee Credit is designed to top up your weekly income to a specific level. The exact sum depends on your personal circumstances, such as whether you’re disabled or a carer, or have particular housing costs.
Savings Credit can offer an additional amount. The exact sum you’ll receive depends on your income and savings, including assumed income from savings and capital over £10,000.
How to determine eligibility for Pension Credit
Elderly individuals, or their friends and family, can quickly check their eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV.UK. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Expert advice and guidance is also available from: More information about how to claim Pension Credit can be found on GOV.UK here.
