Nearly half a million people have signed an online petition organised by Age UK calling on the UK Government to reverse its decision to introduce means testing for Winter Fuel Payments. The charity launched its campaign following Chancellor Rachel Reeves’ announcement at the end of July, and the legislation was rushed through parliament on 22 August without any debate or vote.
The winter fuel payment is a tax-free sum paid to anyone over state pension age in November or December to help with heating costs over the winter. It’s worth between £100 and £300, depending on where you live and who you live with. But with the update, an estimated 10 million pensioners will be left without the benefit unless they are in receipt of means-tested benefits such as Pension Credit.
Age UK’s campaign, ‘Save the Winter Fuel Payment for struggling pensioners’, warns the change will hit older people who rely on extra financial support to cover the costs of higher bills during the winter months. Ms Reeves blamed the £22bn “black hole” in the public finances for the decision to cut the allowance.
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Speaking to the BBC, Commons Leader Lucy Powell said she could not see a scenario in which Reeves would abandon his plan and warned of a “run on sterling” if the government did not act on public finances. For money saving tips, sign up for our Money newsletter here
He acknowledged that losing the payment would make things harder for pensioners, but defended the government taking “really tough decisions” such as targeting winter fuel payments. On Thursday, Liberal Democrat leader Sir Ed Davey called on the Conservatives to hold a vote in the House of Commons on the issue, describing it as the government’s first big mistake.
On Monday, September 2, the UK Government launched ‘Pension Credit Action Week’, which aims to encourage older people to check their eligibility for Pension Credit, which would then allow them to access Winter Fuel Payments. “Up to 880,000 pensioners could be missing out on this cash boost, worth an average of £3,900 a year,” the campaign said. “Family, friends and neighbours are being encouraged to reach out to their retired family members to check their eligibility and apply.”
Pensioners with a weekly income below £218.15 for a single person or £332.95 for a couple are encouraged to use the DWP’s online calculator to work out whether they qualify. Pension Credit can be worth up to £3,900 a year on average. Claims made before 21 December and successful after will receive a retroactive Winter Fuel Payment.
Martin Lewis, founder of MoneySavingExpert, who contributed to the campaign, said: “It is a national tragedy that nearly a million low-income pensioners who have been contributing to the system for years are still missing out on the vital Pension Credit financial lifeline – a better name for it would be ‘State Pension Top-Up’.”
“Whatever your age, take a second to understand how this works so we can spread the message to every nook and cranny (and grandparent too). You will still get Pension Credit if you claim it, especially as the government has just cut Winter Fuel Benefit eligibility for millions of people.
“For most single pensioners, a total weekly income including savings of under £218 (under £333 for retired couples) is probably enough to qualify, although my rule of thumb is to spend a few minutes checking as some still have a chance of qualifying, even if your weekly income is up to £235 (£350 for retired couples).
“Pension Credit may pay out £1,000 a year, but even if it only pays you threepence, claim it anyway! Once you get it, it’s a transitional benefit that opens the door to other benefits including council tax reductions, free TV licences (if you’re over 75), dental and optical support and more.”
How to check eligibility for Pension Credit
You can quickly check your eligibility for yourself or your friends and family using the online Pension Credit calculator on GOV.UK. This will give you an estimate of how much you could receive, the Daily Record reports.
The Pension Credit helpline is also available to make a claim directly on 0800 99 1234 – the lines are open Monday to Friday from 8am to 6pm. Expert help and advice is also available at:
More help if you qualify for Pension Credit
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Housing assistance if you rent out the property you live in
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Support for mortgage interest if you own the property you live in
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Council tax relief
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Free TV licence if you are 75 or over
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Help with travel costs for NHS dental treatment, glasses and hospital appointments
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Help with your heating costs with the Warm Home Discount Scheme and Winter Fuel Payment
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Discount on Royal Mail forwarding service if you are moving house
Mixed-age couples and Pension Credit
In May 2019, the law was changed so that ‘mixed-age couples’, where one spouse is of retirement age and the other is below retirement age, are considered ‘working-age’ couples when checking whether they qualify for means-tested benefits.
This means they won’t be able to claim Pension Credit or pension age Housing Benefit until they both reach State Pension age. Before this DWP change, a mixed-age couple would only be eligible to claim the more generous state pension age benefits once one of them reached the correct age.
How to use the Pension Loan calculator
To use the calculator on GOV.UK you will need the following information:
You will also need this information for your partner, if you have one. You will be presented with a series of questions with multiple-choice answer options.
These include:
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Your date of birth
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Your residence status
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Where in England do you live?
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Even if you are registered blind
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What benefits are you currently receiving?
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How much money do you receive each week for any benefits you receive?
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Whether someone is receiving Carer’s Allowance to look after you
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How much do you receive each week in pensions – State Pension, individual and work pensions
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Any employment gains
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Do you have any savings, investments or bonds?
Once you have answered these questions, a screen will show you your answers and allow you to go back and change them before submitting. The Pension Credit calculator will then display how much benefit you could receive each week.
All you need to do then is follow the link to the application page to find out exactly what you can get from the DWP, including access to other financial support.
There’s also the option to print your answers using the calculator tool to help you complete the application form quicker without having to search for the same information again. Try the Pension Loan Calculator for yourself or a family member to make sure you’re getting all the financial support you deserve.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if: You or your partner:
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Are you postponing your State Pension?
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owning more than one property
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self-employed
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Have housing costs (such as service charges or Crown Tenant rent) that are not covered by Housing Benefit, neither mortgage payments nor rent
How to make a request?
You can start your application up to four months before you reach state pension age. You can apply at any time after you reach state pension age, but your application can only be backdated for three months. This means you can get up to three months’ pension credit on your first payment if you were eligible during that time. If you’re backdating your application, you’ll need details of your income, savings and investments from the date you want to start your application.
You will need:
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Your National Insurance number
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information about your income, savings and investments
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Your bank account details if you are applying by phone or post
Apply online
You can use the online service if:
To check if you’re eligible, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.