Winter Fuel Payments will be stopped for millions of pensioners this year as Rachel Reeves announced her plans to plug the government’s £20bn “black hole” in public finances.
Speaking in Commons on Monday, the chancellor revealed several cost-cutting measures, including a surprise scaling down of the one-off payment designed to help pensioners stay warm in the colder months .
Ms Reeves said: “I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards.
“Let me be clear: this is not a decision I wanted to make,” she added, “nor is it one that I expected to make.
“But it is a necessary and urgent decision I must make – It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”
All pensioners have been eligible for Winter Fuel Payments since they were introduced by Tony Blair’s Labour government in 1997. The new change will now mean that only those in receipt of Pension Credit or other certain benefits will continue to receive them.
The payment amount remains unchanged, at £200 for those aged between 66 and 79, and £300 for those over 80.
In Scotland and Northern Ireland, the payments are devolved. Holyrood was due to replace the measure with their own ‘Pension Age Winter Heating Payment’ this year. However, a spokesperson for the Scottish Government says Ms Reeves’ announcement was “made without any consultation or discussion.”
“It’s understood means-testing Winter Fuel Payments will reduce the funding given to the Scottish Government associated with our planned replacement Pension Age Winter Heating Payment,” they added.
Charities for older people have also criticised the move. Age UK’s Charity Director, Caroline Abrahams CBE said: “We strongly oppose the means-testing of Winter Fuel Payment (WFP) because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result.
“Yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.”
If you’ve been affected by the change to Winter Fuel Payments, here’s what you can do:
Check if you’re eligible for Pension Credit
The first thing anyone affected by the changes to the Winter Fuel Payment should do is check if they’re eligible for Pension Credit. If you are able to claim this benefit, it will now unlock the Winter Fuel Payment for you.
Research from Age UK shows that around 800,000 pensioners are missing out on the means-tested benefit. The charity recommends calling their helpline or using their handy benefits calculator to check their eligibility.
To qualify for Pension Credit, you must be above state pension age – currently 66 – and on a low income. It will top up your weekly income to either:
- £218.15 if you’re single
- £332.95 if you have a partner (shared jointly)
This works out at £11,343.8 a year if single, or a shared income of £17,313.4 for two.
It’s crucial those who are eligible for the credit apply for it, as experts describe it as a ‘passport’ benefit. Alongside the Winter Fuel Payment, claiming Pension Credit can unlock Housing Benefit, support with mortgages, a free TV licence and help with NHS dental appointments. This can add up to thousands of pounds in additional support.
However, the eligibility is not tapered: if you receive even £50 over the Pension Credit income, you will not qualify for this additional support.
Age UK says there are around one million pensioners in this situation. A spokesperson said: “Older people in this group often tell us they really struggle financially; the proposed change will make it even harder for them to afford to stay warm when it gets chilly.
“Means-testing WFP this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision, and one that will potentially jeopardise their health as well as their finances – the last thing they or the NHS needs.”
Other support available if you’re not eligible for Pension Credit:
Attendance Allowance
Attendance allowance is a non-means tested benefit is designed to support pensioners who need daily living help. It offers a minimum of £3,700 a year, rising to £5644.6 depending on the level of support needed.
To be eligible for the benefit, the claimant must have needed help or supervision for six consecutive months, even if none has been received. This means you need assistance with daily living, or someone to watch you to avoid danger to yourself.
Money guru Martin Lewis recently launched a campaign to raise awareness of the benefit, which he says is going unclaimed by around a million eligible pensioners.
Household Support fund
The Household Support Fund is money given to all local councils to support vulnerable households in their area. Councils are free to allocate the funds however they feel is best.
Some have provided cash grants, supermarket vouchers, or energy bill assistance. You will need to visit your local council’s website to find out what help may still be available.
To find out what support is available, the End Furniture Poverty charity offers a helpful assistance finder tool .
Energy provider help
Some energy suppliers are offering help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. You will need to contact your energy provider to find out if you are eligible.
British Gas also offer a grant of up to £2,000 to customers of any energy provider . You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website .
Charitable grants
If you are struggling financially, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances.
However, these grants will typically require you to meet specific criteria and only be able to offer limited funds.
Several charitable grants are available for older people, with some having additional criteria such as being disabled or ill – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.
For the latest benefits and pensions payment dates and cost of living support, visit The Independent’s regularly updated guide
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