DWP launches Pension Credit campaign after Winter Fuel Payment changes

Campaingers have welcomed the drive – but say Winter Fuel Payment changes should be scrapped

Chancellor Rachel Reeves unveiled plans last month to introduce means testing for the winter fuel payment (Yui Mok/PA) (PA Archive)

The Department for Work and Pensions (DWP) has urged thousands of pensioners to check that they are claiming Pension Credit this winter amid major changes made to the Winter Fuel Payment last month.

An estimated 800,000 pensioners are not claiming the means-tested benefit despite being eligible. Pension Credit tops the weekly income of all people aged 66 and over to £218.15, or £332.95 if in a couple.

The awareness drive comes after Rachel Reeves announced last month that the government would be cutting the yearly Winter Fuel Payment so that only those claiming Pension Credit are eligible.

This marked the first change to the benefit since 1997, when it was introduced and made available for all pensioners. It provides up to £300 per household to help towards heating costs in the winter.

The chancellor says changing the eligibility of the Winter Fuel Payment was necessary to plug the government’s multi-billion pound “black hole” between spending commitments and the cash available to meet them.

Chancellor Rachel Reeves speaks to business leaders (Lucy North/PA) (PA Wire)

Launching the awareness campaign, she said: “The dire state of the public finances we inherited from the previous government means we’ve had to make some very difficult decisions.

“Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.

“We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for Pension Credit.”

The DWP describes Pension Credit as a “passport” benefit, opening the door to more financial help than just the top-up. This includes Housing Benefit, support with mortgages, a free TV licence – and now the Winter Fuel Payment.

The government’s campaign comes as part of its annual ‘Pension Credit Week of Action’ set to commence in September. The DWP says it will aim to identify households where Pension Credit is not being taken up, and tackle some of the “myths” that may stop people applying.

The deadline to make a backdated claim for Pension Credit and still receive the Winter Fuel Payment is December 21. Eligible pensioners can apply on the government’s website.

DWP secretary Liz Kendall (PA)

However, eligibility is not tapered: if a pensioner receives even £50 over the Pension Credit income, they will not qualify for the benefit, nor all the additional support that comes with it

Age UK says there are around one million pensioners in this situation, leaving them unable to claim the Winter Fuel Payment despite earning no more than £14,000. The old age charity has launched a campaign to reverse Ms Reeves’ changes, with just under 420,000 petition signatures so far.

Responding to the DWP’s awareness campaign, Caroline Abrahams, charity director at Age UK said: “We’re delighted the Government is launching a communications drive to encourage older people to claim Pension Credit and at Age UK we will certainly do everything we can to support it.

“However, in all honesty we do not believe it will not be enough to achieve the dramatic increase in Pension Credit take up that’s needed, in the short time available for pensioners to secure their entitlement to Winter Fuel Payment before the weather chills.

“Plus, however successful this exercise turns out to be - hopefully very - there will still be over a million older people set to suffer real hardship as a result of the decision to means-test Winter Fuel Payment, since they are ineligible for Pension Credit as their meagre incomes are just a little too high. This is why we have urged the Government to think again.”

Ms Abrahams points to the fact that Pension Credit take up has never exceeded two-thirds in the past decade – even when it was changed in 2015 to provide a free TV licence – meaning the latest campaign is unlikely to improve the figure.

"However tough the economic choices the Government faces may be, surely there has to be a better way than adopting a policy that we fear is set to further impoverish a substantial group of pensioners on low incomes this winter, potentially putting their health as well as their financial wellbeing at risk," she adds.

For a guide to all the help available to pensioners this winter, The Independent has a useful explainer