1.6million people in ‘poverty’ set to lose £300 winter payment but HALF could still get it – check if you need to act
HUNDREDS of thousands of struggling pensioners on course to lose the winter fuel payment could keep the benefit with a simple move.
Five out of six pensioners living in poverty will lose out on up to £300 after the government shake-up to cold weather payouts, analysis by pension consultants LCP found.
Changes by chancellor Rachel Reeves mean that 10million pensioners will no longer get the benefit.
Yet, out of 1.6million of the poorest pensioners, it’s estimated that half could keep on receiving the winter fuel payment if they applied for pension credit.
A huge 800,000 pensioners are entitled to the benefit but do not claim.
As a result, this year they will also miss out on up to £300 winter payment which is now being restricted to those claiming pension credit and other means-tested support including income-related employment support allowance or Universal Credit.
Until now, winter fuel payments have previously been available to everyone above state pension age, currently 66.
The cash had been designed to help with the cost of energy bills in the colder months.
It is usually automatically paid in November or December without any need to apply for the cash.
Anyone who could qualify for Pension Credit is now urged to apply to keep the winter fuel payment.
You can start an application for Pension Credit up to four months before you reach state pension age – if you claim after, you can backdate by up to three months.
Applications need to be made on the government website or by calling 0800 99 1234.
You’ll need your National Insurance number, as well as information about income, savings and investments.
LCP also looked at other ways the government could target winter fuel payments to those who need it including paying to households in Council Tax bands A-D; paying to older pensioners, aged 80 and above, or to bring the payments within the definition of taxable income.
The analysis found that pensioner poverty rates are highest for those living in the lowest value properties so linking to council tax bands would protect the large majority of low income pensioners.
Former pensions minister and LCP partner Steve Webb said:“There is a range of ways in which the government could target spending on Winter Fuel Payments, but our analysis shows that limiting payments only to those on pension credit will leave the vast majority of pensioners below the poverty line losing out.
“As an alternative, Winter Fuel Payments could be targeted on those in lower value properties, which would protect most poorer pensioners, but would dramatically reduce the saving to the chancellor.
“It is ultimately a matter for politicians to decide on the balance between raising revenue and protecting the vulnerable, but it is clear that continuing payments only to those on pension credit will mean large numbers of already low income pensioners losing out.”
Crucial to claim Pension Credit if you can
HUNDREDS of thousands of pensioners are missing out on Pension Credit. The Sun's Assistant Consumer Editor Lana Clements explains why it's imperative to apply for the benefit..
Pension Credit is designed to top up the income of the UK’s poorest pensioners.
In itself the payment is a vital lifeline for older people with little income.
It will take weekly income up to to £218.15 if you’re single or joint income to £332.95.
Yet, an estimated 800,000 don’t claim this support. Not only are they missing on this cash, but far more extra support that is unlocked when claiming Pension Credit.
With the winter fuel payment – worth up to £300 now being restricted to pensioners claiming Pension Credit – it’s more important than ever to claim the benefit if you can.
Pension Credit also opens up help with housing costs, council tax or heating bills and even a free TV licence if you are 75 or older.
All this extra support can make a huge difference to the quality of life for a struggling pensioner.
It’s not difficult to apply for Pension Credit, you can do it up to four months before you reach state pension age through the government website or by calling 0800 99 1234.
You’ll just need your National Insurance number, as well as information about income, savings and investments.
What is pension credit?
A huge £2bilion goes unclaimed in Pension Credit each year.
The benefit tops up your weekly income to £218.15 if you’re single or joint income to £332.95.
This is known as “guarantee credit”.
If your income is lower than this, you’re very likely to be eligible for the benefit.
And, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
- Attendance allowance
- The middle or highest rate from the care component of disability living allowance (DLA)
- The daily living component of personal independence payment (PIP)
- Armed forces independence payment
- The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
You could get the “savings credit” part of pension credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
When you receive Pension Credit it also unlocks other financial support such as council tax benefits and free TV licences for over-75s.
You can use an online benefits calculator to find out your entitlement to support, there is a list of independent and free checks you can make at gov.uk/benefits-calculators.