No.10 Wants Everyone Eligible To Claim Pension Credit – But That Could Present 1 Problem

Downing Street wants every person eligible to go on pension credit, even though a think tank says it would undo any savings from the changes to the winter fuel allowance.

MPs will decide whether or not to back the government’s plan of restricting winter fuel payments just to individuals on pension credit on Tuesday.

The controversial move could mean around 10 million pensioners in England and Wales end up without the payment of up to £300.

It is also estimated around 880,000 (37%) eligible pensioners do not claim pension credit right now – which is why the government is encouraging anyone who thinks they may be entitled to the benefit to apply.

The proposed cuts are expected to save around £1.4bn a year.

The government claims this will go some way towards filling the ″£22bn black hole” left by the Tories.

However, reporters pointed out that if everyone signed up to pension credit, it would actually cost the government £2bn, therefore overshadowing any savings.

As ITV’s Anushka Asthana posted on X on Monday, the Institute for Fiscal Studies (IFS) has also confirmed the take-up would eliminate savings.

That counters a claims from ministers that winter fuel payments had to be cut in order to fill the “black hole” in our finances.

Yet, the spokesperson told reporters anyone eligible should apply for pension credit.

She also told reporters on Monday that the government’s efforts to boost those applying for pension credit had already had a significant result.

She said: “As a result of that work, we’ve seen a 115% increase in pension credit claims in the last five weeks compared to five weeks before – 38,500 pension credit claims, compared to 17,900.”

“This government is determined to make sure those who should be claiming pension credit are and are supporting them to do so,” she said. “We’ve seen the impact of that already.”

Asked if the prime minister was happy with this rate of progress, she said: “There is still more to do the campaign is ongoing, and there is activity from HMRC today as part of that.

“We continue to urge people to check their eligibility and support people in making those applications.”

She said that this level of effort towards increasing the applications in pension credit had not been “seen before.”

When pressed over the backlash PM Keir Starmer has faced because of the plan to restrict the winter fuel payments, the spokesperson said it was one of many “tough choices” the government have to make.

She said: “It is not a decision he wants to make, the government wants to make, but we have to fix the foundations of our economy and that means tough choices and one of those is making sure we are targeting to those who need it the most.”

Downing Street also added that there would be no softening of the impact of the policy after Home Office minister Diana Johnson “misspoke” during broadcast interviews this morning.

Johnson told BBC Breakfast: “We generally want to get energy bills down. We know over the past few years what trouble that’s caused to household budgets and the cost of living crisis, so there is a lot of work going on around that social tariff for the poorest members of our society.”

Shortly after the interview, the government said the minister had “misspoken” over this claim – and Downing Street later told journalists there would be no mitigating measures to ease the pain of the winter fuel payment restrictions.

Up to 50 Labour MPs are said to be uncomfortable with the idea of voting for the government’s plan, sparking speculation they could rebel and vote against Starmer.

It’s not clear if that could result in MPs losing the whip. 

Labour suspended seven MPs just days after the party was elected when the rebels voted against the government over its two-child benefit cap.