In the past, the tax-free benefit was accessible to all individuals who had reached state pension age. However, there have been changes, and now this benefit will only be granted to those who are over state pension age and are receiving pension credit or other means-tested support.
It is important for pensioners to verify their eligibility for the winter fuel allowance following the discontinuation of universal payments.
In a recent announcement, Chancellor Rachel Reeves stated that the tax-free benefit, aimed at assisting older individuals with higher heating expenses during the colder months, will now be restricted to those who are eligible for pension credit.
The unexpected decision was made as a means to address a significant deficit of £22 billion in the public finances, which the Labour Party criticised the Conservatives for concealing while they were in power.
Today, the new government is launching a campaign to raise awareness about the changes, as there is growing concern that a significant number of eligible pensioners have not yet claimed their benefits.
In the past, the funds were accessible to individuals who had reached state pension age. However, the eligibility criteria have now changed, and only those over state pension age who are receiving pension credit or other means-tested support will have access to the funds.
The number of people eligible for the money will decrease significantly, going from 11.4 million to only 1.5 million.
The payment amount is £200 for households with recipients under 80 years old and £300 for households with recipients over 80 years old.
According to the Department for Work and Pensions, approximately 1.4 million pensioners are currently receiving pension credit, but there are still around 880,000 eligible households that have not yet claimed this support.
The government’s awareness campaign aims to identify households that are not currently claiming the benefit and to encourage pensioners to apply before the deadline of December 21. This will allow them to make a backdated claim for pension credit and receive the winter fuel payment.
The focus will be on debunking common misconceptions that may discourage people from applying, such as the belief that having savings, a pension, or owning a home can prevent them from receiving pension credit.
You can find more information about applying for pension credit on the government’s How to Claim page.
Experts have recently cautioned that the average household energy bill is expected to increase by £146 in October, following the global energy crisis caused by the Russian invasion of Ukraine.
Justifying the cuts, Ms. Reeves emphasised the challenging financial situation inherited from the Tories, which necessitated making tough choices. She also highlighted the government’s commitment to pensioners by maintaining the triple lock.
According to Laura Trott, the shadow chief secretary to the Treasury, the proposed plans would lead to a rise in pensioner poverty. She criticised ministers for giving in to every union demand during the recent strike negotiations.
“Instead of making futile attempts to minimise the consequences of their own choices, it would be more transparent for the Chancellor to disclose and release the internal impact assessment. This way, the public can gain a genuine understanding of the negative effects of this policy,” expressed Ms. Trott.