A recent update to Department for Work and Pensions (DWP) guidance has revealed that over 760,000 older Brits are at risk of missing out on the Winter Fuel Payment this year, despite being eligible for the benefit. The Winter Fuel Payment can provide up to £300 to help with heating costs, but low-income pensioners must now apply for Pension Credit, which is worth an average of £3900, in order to receive this assistance.
The decision to means-test the Winter Fuel Payment was made by Labour in July, as they discovered a significant financial gap left by the previous government. This change could result in roughly 200,000 pensioners falling into relative poverty by the end of Labour’s first term in office, according to DWP boss Liz Kendall MP. The government hopes that the impact of this policy can be offset by an increase in Pension Credit uptake.
DWP is encouraging people to check their eligibility for Pension Credit before December 21 to ensure they receive the Winter Fuel Payment this winter. Despite a 13% decrease in the government’s estimate of pensioners missing out on Pension Credit, there are still 760,000 low-income pensioners who may struggle with higher heating costs without the universal benefit.
To qualify for the benefit and the Winter Fuel Payment, individuals’ weekly income must be below £173, or £236 for couples. While the policy change is expected to save the government £1.4 billion annually, there are concerns from pension poverty campaigners about the potential impact on older Brits.
Prime Minister Sir Keir Starmer highlighted the government’s efforts to increase Pension Credit uptake and stabilize the economy during a recent event at the G20 in Brazil. Despite these efforts, many low-income pensioners are still at risk of facing financial difficulties this winter without the support of the Winter Fuel Payment.
