Pension credit claims double after £300 Winter Fuel Payment axed for millions – 10-minute check to keep payment
THOUSANDS of people have rushed to claim pension credit in the weeks since the government announced it would restrict the winter fuel payment to those on the benefit, new figures have shown.
The Department for Work and Pensions (DWP) said it had received 38,500 pension credit claims in the last five weeks.
The rise in claims appears to have begun after July 29, when Chancellor Rachel Reeves announced that the winter fuel payment would be limited to only those claiming pension credit or other means-tested benefits.
It represents a 115% increase in pension credit claims received by the department in the past five weeks compared to the five weeks before when there were 17,900 claims.
However, Rachel Vahey, head of public policy at AJ Bell, said: “Previous government estimates suggest just 6-in-10 people who are eligible for pension credit make an application, potentially costing those on the lowest incomes thousands of pounds in lost income.
“Those rushing to fill in the forms will be wanting to keep a hold of the £300 winter fuel payment, but could also access other valuable benefits, including dental treatment and free TV licenses.
“But there are still too many pensioners potentially missing out, and the government needs to keep banging the drum to urge these people to claim these valuable benefits.”
It takes as little as ten minutes to check if you’re entitled to the benefit, and you can apply over the phone.
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
If your income is lower than this, you will likely be eligible for the benefit.
If your income is slightly higher, you might still be eligible for pension credit if you have a disability, care for someone, have savings, or have housing costs.
You can use a free benefits calculator to check if you’re missing out.
Entitledto, Stepchange and Turn2us all offer these handy tools on their websites.
You can also check your eligibility online by visiting gov.uk/pension-credit first.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
Remember, a successful claim for pension credit unlocks your eligibility for this year’s winter fuel payment.
How much is the winter fuel payment?
PAYMENTS last year were worth between £300 and £600, depending on your specific circumstances.
This is because the amount included a “Pensioner Cost of Living Payment” – between £150 and £300.
This year, it will be worth £200 for eligible households or £300 for eligible households with someone aged over 80.
That means you could receive up to £300 in free cash, depending on your circumstances.
Most payments are made automatically in November or December.
You’ll get a letter telling you:
- How much you’ll get
- Which bank account it will be paid into
If you do not get a letter or the money has not been paid into your account by January 29, 2025, you must contact the Winter Fuel Payment Centre on 0800 731 0160.
Ms Reeves announced changes to the winter fuel payment as part of a series of measures to fill what she called a £22 billion “black hole” in the public finances.
It is expected to reduce the number of pensioners receiving the up to £300 payment by 10 million, from 11.4million to 1.5million, saving around £1.4 billion this year.
The controversial decision is set to be voted on in Parliament on Tuesday (September 10).
The Prime Minister is expected to face backlash from his peers, with 50 Labour MPs reportedly gearing up to vote against the move, The Guardian said.
Several charities have also urged officials to do a U-turn on the decision.
However, the freshly appointed PM has doubled down on the decision, telling the BBC over the weekend the Government was “going to have to be unpopular“.
ANALYSIS by Ryan Sabey, The Sun’s Deputy Political Editor.
Ministers risked a major backlash as a “routine” £400 planned rise in the state pension doesn’t make up for the winter fuel allowance axe.
Treasury internal analysis reveals they expect the benefit to go up by average earnings which will kick in next April for millions of elderly Brits.
The measure means the overall increase in incomes for OAPs is likely to be £100 or £200.
Tory leader Rishi Sunak used a heated Prime Minister’s Questions to question why Sir Keir Starmer decided to give train drivers a pay hike – while cutting the benefit.
He said: “The government doesn’t have to choose to take money off low-paid pensioners and give it to highly paid train drivers. He can’t justify it.
“Government is about making choices, and the new Prime Minister has made a choice.
“(He) has chosen to take the winter fuel allowance away from low-income pensioners and give that money to certain unionised workforces in inflation-busting pay rises.
“So can I just ask the Prime Minister, why did he choose train drivers over Britain’s vulnerable pensioners?”
The PM said: “This Government was elected to clear up the mess left by the party opposite, to bring about the change that the country desperately needs. Our first job was to audit the books, and what we found was a £22 billion black hole.”
The criticism comes as Labour MP Rachael Maskell has suggested she can’t vote with the government to end the universal winter fuel cash.
She told the BBC: “I couldn’t vote for this, but I think what we are saying, this is bigger than a vote because this is about protecting people’s lives and ultimately that is our responsibility as MPs, to speak to truth to power.
“That is all we are doing is to say actually there are some people in danger here, that are at risk, and we need the Government to step in like Gordon Brown did when he introduced the winter fuel payment.”