The Department for Work and Pensions has updated its guidance on the annual Winter Fuel Payment, affecting millions of pensioners in England and Wales.
Why it matters: The changes will significantly reduce the number of pensioners eligible for the payment, potentially leaving many facing financial hardship during the winter months.
The details:
- The payment will now only be available to around 1.5 million State Pensioners on means-tested benefits, down from the previous 10 million recipients.
- Payments will range from £100 to £300, depending on individual circumstances.
- Those living in Scotland will no longer receive the Winter Fuel Payment and may instead be eligible for the new ‘Pension Age Winter Heating Payment.’
- Eligibility criteria for winter 2024/25 require individuals to have been born before September 23, 1958, and to be receiving a qualifying income-related benefit like Pension Credit during the qualifying week of September 16-22, 2024.
Eligible pensioner households will receive letters in October or November informing them of the amount they will receive, with most payments being deposited into bank accounts in November or December.
What they’re saying:
- “It’s great that pension credit can unlock access to housing benefit and council tax support, alongside a growing list including social tariffs, the warm home discount, and now winter fuel payments. But it means that about 130,000 pensioners might be better off with a lower income.” – Deven Ghelani, founder of Policy in Practice
- “The real pain is going to be felt by those just above the entitlement for pension credit. They are on a ledge and some of them will drop off into silent poverty. We will get more cold, damp, and mouldy homes because people will turn off their heating just to get by.” – Jan Shortt, general secretary of the National Pensioners Convention
The other side: A government spokesperson defended the policy, stating that targeting winter fuel payments to those most in need is necessary given the current state of public finances.
What’s next: Those who have not received the Winter Fuel Payment before or are on Universal Credit will need to claim the payment by post starting September 16, 2024, or by phone from October 10, 2024. The deadline for claims for winter 2024/25 is March 31, 2025.
Full story
The Department for Work and Pensions (DWP) has confirmed changes to the Winter Fuel Payment for State Pension age households in England and Wales. Chancellor Rachel Reeves announced that the payment will now only be available to around 1.5 million State Pensioners on means-tested benefits, with payments ranging from £100 to £300. Those living in Scotland will no longer receive the Winter Fuel Payment and may instead be eligible for the new ‘Pension Age Winter Heating Payment.’ Eligibility for winter 2024/25 requires individuals to have been born before September 23, 1958, and to be receiving a qualifying income-related benefit during the qualifying week of September 16-22, 2024.
Letters will be sent to eligible pensioner households in October or November, informing them of the payment amount. Most will receive the payment in their bank accounts in November or December. Eligibility criteria include living in England or Wales, being born before September 23, 1958, and receiving one of the following benefits: Pension Credit, Universal Credit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), or Income Support.
Payment amounts vary based on living arrangements and age. Those who live alone will receive £200 if born between September 23, 1944, and September 22, 1958, or £300 if born before September 23, 1944. Those who live with someone and jointly claim benefits will receive £200 if both were born between the specified dates or £300 if one or both were born before September 23, 1944.
Care home residents will receive £100 or £150, depending on their age.
Winter Fuel Payment eligibility changes
Those who have not received the Winter Fuel Payment before or are on Universal Credit need to claim the payment by post starting September 16, 2024, or by phone from October 10, 2024.
The deadline for claims for winter 2024/25 is March 31, 2025. Tens of thousands of UK pensioners are facing financial hardship due to the government’s decision to restrict winter fuel payments. A new analysis by Policy in Practice indicates that approximately 130,000 older people will miss out on the payments because their income is slightly above the pension credit threshold.
Experts warn that the changes might leave some pensioners worse off than those who qualify for the payments. Jan Shortt, general secretary of the National Pensioners Convention, expressed concern for those just above the pension credit threshold, stating that they are at risk of falling into “silent poverty.”
Former Conservative pensions minister Ros Altmann criticized the decision, calling it a “real blunder” and warning that it could push many pensioners into fuel poverty. A recent Opinium poll showed that 49% of respondents believed it was the wrong move.
Heléna Herklots, the older people’s commissioner for Wales, has urged the government to reconsider the decision, citing concerns about driving more older people in Wales into poverty. Greg Fell, president of the Association of Directors of Public Health, emphasized the health risks associated with fuel poverty. A government spokesperson defended the policy, stating that the government must make difficult decisions to fix the economy and that targeting winter fuel payments to those in most need is the right approach.
- DailyStar.”DWP confirms full list of State Pension age households that could see £300 Winter Fuel Payments”.
- TheGuardian.”UK pensioners left on ‘financial cliff edge’ by cuts to winter fuel payments”.
- Sky.”Money blog: Major boost for homeowners as interest rate finally cut – here’s what it means for mortgages”.