Winter Fuel Payment update as new plan put forward to reverse change

Winter Fuel Payment update as new plan put forward to reverse change

Nearly half a million people have signed an online petition by Age UK urging the UK Government to reverse its decision to means-test Winter Fuel Payments. The charity began its campaign following Chancellor Rachel Reeves’s announcement at the end of July, with the legislation being expedited through parliament on August 22, bypassing any debate or vote.

The winter fuel payment is a tax-free sum paid in November or December to anyone over state pension age to help with heating costs over the winter. It is worth between £100 to £300, depending on where you live and who you live with. But with the update an estimated 10 million pensioners will lose out on the assistance unless they receive means-tested benefits such as Pension Credit.

Age UK’s campaign called ‘Save the Winter Fuel Payment for struggling pensioners’ warns that the change will negatively impact older people who rely on the extra financial support to help cover the costs of higher bills during the winter. Ms Reeves blamed a £22bn “black hole” in public finances for the decision to restrict the allowance.

READ MORE: Millions of British pensioners may face tax due to State Pension hikes and frozen allowances

READ MORE: Travel expert warns of fraudulent travel agencies and other holiday scams

Speaking to the BBC, Commons Leader Lucy Powell said she could not see a scenario in which Ms Reeves would abandon her plan, and warned there could have been a “run on the pound” had the government not taken action on public finances. For money-saving tips, sign up to our Money newsletter here

She acknowledged that losing the payment would make things even tighter for pensioners, but defended the government for taking “really difficult decisions” such as targeting winter fuel payments. On Thursday, Liberal Democrat leader Sir Ed Davey joined the Conservatives in calling for a Commons vote on the matter, describing it as the government’s first big mistake.

On Monday, September 2 the UK Government launched ‘Pension Credit Week of Action’ which is aimed at encouraging older people to check their eligibility for Pension Credit, which in turn would see them gain access to Winter Fuel Payments. “Up to 880,000 pensioners could be missing out on this cash boost worth on average up to £3,900 per year,” the campaign states. “Families, friends and neighbours are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply.”

Pensioners with a weekly income below £218.15 for a single person or £332.95 for a couple are being urged to use the DWP’s online calculator to determine their eligibility for payments. Pension Credit could be worth on average £3,900 per year. Claims made before December 21 which later turn out to be successful will receive a backdated Winter Fuel Payment.

Contributing to the campaign, founder of MoneySavingExpert Martin Lewis said: “It’s a national tragedy that nearly a million eligible low-income pensioners who’ve paid into the system for years are still missing out on the crucial Pension Credit financial lifeline – a better name for it would be the ‘State Pension Top Up’.

“So whatever your age, take a second to understand how it works, so we can all ensure the message is spread to every nook and granny (and grandpas too). Especially as the government has just severed Winter Fuel Benefits eligibility for millions, yet if you claim Pension Credit you’ll still get it.

“While for most single pensioners, you need total weekly income, including from savings, under around £218 (pensioner couples under £333) to be very likely to qualify, my rule of thumb is spend a few minutes to check even with weekly income up to £235 (pensioner couples £350) as there’s still a chance some may be eligible.

“Pension Credit can pay out £1,000s a year, but even if it’s only going to pay you thruppence, still claim it! As once you get it, it’s a gateway benefit that opens the door to other entitlements – including council tax reductions, free TV licences (if age over 75) dental and optical support and more.”

How to check eligibility for Pension Credit

You can quickly check eligibility for yourself or friends and family by using the online Pension Credit calculator on GOV.UK here. It will give you an estimate of what could be received, reports the Daily Record.

The Pension Credit helpline can also be used directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday. Expert help and advice is also available from:

More help if you do qualify for Pension Credit

  • Housing benefit if you rent the property you live in

  • Support for mortgage interest if you own the property you live in

  • Council tax discount

  • Free TV licence if you are aged 75 or over

  • Help with NHS dental treatment, glasses and transport costs for hospital appointments

  • Help with your heating costs through the Warm Home Discount Scheme and Winter Fuel Payment

  • A discount on the Royal Mail redirection service if you are moving house

Mixed aged older couples and Pension Credit

In May 2019, the law changed so a ‘mixed age couple’ – a couple where one partner is of state pension age and the other is below it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.

This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous state pension age benefits when just one of them reached the right age.

How to use the Pension Credit calculator

To use the calculator on GOV.UK, you will need details of:

You’ll also need these details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.

This includes:

  • Your date of birth

  • Your residential status

  • Where in the UK you live

  • Whether you are registered blind

  • Which benefits you currently receive

  • How much you receive each week for any benefits you get

  • Whether someone is paid Carer’s Allowance to look after you

  • How much you get each week from pensions – State Pension, private and work pensions

  • Any employment earnings

  • Any savings, investments or bonds you have

Once you have answered these questions, a screen will show you your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.

Next all you have to do is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.

There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look up the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

You cannot use the calculator if you or your partner:

  • are deferring your State Pension

  • own more than one property

  • are self employed

  • have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit

How to make a claim

You can start your application up to four months before you reach state pension age. You can claim any time after you reach state pension age but your claim can only be backdated for three months. This means you can get up to three months of pension credit in your first payment if you were eligible during that time. If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.

You will need:

  • your National Insurance number

  • information about your income, savings and investments

  • your bank account details, if you’re applying by phone or by post

Apply online

You can use the online service if:

To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel210520-twitter-verified-cs-70cdee.jpg (1500×750)

Support Independent Journalism with a donation (Paypal, BTC, USDT, ETH)
WhatsApp channel DJ Kamal Mustafa