Around 880,000 pensioners in the UK are at risk of missing out on the Winter Fuel Payment this year due to changes in eligibility criteria.
The Department for Work and Pensions (DWP) has warned that those who fail to claim Pension Credit could lose access to the energy bill payment, which ranges from £200 to £300.
In July, Chancellor Rachel Reeves confirmed the payment would be reserved for those on means-tested benefits going forward.
Before this change, every Briton was entitled to access Winter Fuel Payments once they reached state pension age which is currently 66.
Labour’s decision to alter the rules has sparked concern among opposition parties and advocacy groups, who fear the impact on vulnerable elderly individuals, particularly those aged 80 and above.
Under the new rules for Winter Fuel Payment eligibility, pensioners need to claim Pension Credit to receive the support.
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The change is expected to reduce the number of recipients from around 12 million to 1.7 million in the first year, according to Government documents.
Work and Pensions Secretary Liz Kendall emphasised the Government’s commitment to prioritising the poorest pensioners amidst financial constraints.
She shared: “The reason we have done it is that we have to deal with the £22billion blackhole in the public finances left by members opposite, but in doing so we will, as a progressive party, always prioritise the very poorest pensioners and that is why we are so determined to end a situation where up to 880,000 miss out on winter fuel because they are not getting Pension Credit, and we are determined to put that right.”
The DWP estimates that approximately 760,000 families entitled to Pension Credit did not claim it in the previous financial year, potentially missing out on an average of £3,900 annually.
To address the issue of unclaimed benefits, the Government has pledged to write to all pensioners about housing benefit and Pension Credit eligibility.
Emma Reynolds, Parliamentary Under-Secretary of State for Work and Pensions, stated in a Commons debate:
“We will write to all pensioners about housing benefit… Please, I urge pensioners on housing benefit, who will be receiving a letter from the Department, to apply for pension credit.”
Reynolds clarified that housing benefit is not considered income when assessing Pension Credit eligibility. The Government is also working to simplify the process by merging the administration of housing benefit and Pension Credit.
Despite these efforts, official documents suggest that only about 100,000 additional people are expected to take up Pension Credit this year, leaving an estimated 780,000 still missing out on the Winter Fuel Payment.Liberal Democrat work and pensions spokesperson Steve Darling criticised the new approach as “regressive” and potentially harmful to vulnerable pensioners.
He highlighted that 2.7 million pensioners over 80 would lose the £300 Winter Fuel Allowance benefit.
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“These are among the most vulnerable in our society,” Darling stated in the Commons. Can you reassure us that you will reverse from this regressive approach that you have taken with the winter fuel allowance and not hit the most vulnerable who are over 80?”
Former Conservative work and pensions minister Mel Stride raised concerns about potential premature deaths resulting from the policy change. He referenced a 2017 Labour Party analysis suggesting around 4,000 pensioners could die prematurely if such measures were implemented.
Liz Kendall defended the Government’s position, emphasising their focus on supporting the poorest pensioners while addressing financial challenges.
“Until party members opposite know that they have to apologise to the British people for the 200,000 extra pensioners in poverty over the last 14 years, and for a £22billion black hole in the public finances, which we are now putting right, which has put the public finances at risk, they will remain on those seats and we will remain on these,” Kendall stated.
