Conservative MPs have called on the Labour Government to “think again” about means-testing the policy change to Winter Fuel Payments ahead of Chancellor Rachel Reeves delivering her first Autumn Budget on Wednesday. Tories gathered in Westminster on Tuesday before handing in a petition to the Treasury.
Shadow work and pensions secretary Mel Stride told the PA news agency that the petition has collected “over a quarter of a million signatures”. Mr Stride said they are “calling upon the Government to think again about means-testing the Winter Fuel Payment ”.
He said “many” pensioners are going to “really, really struggle”, adding: “This Government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.”
The Labour Government said after taking office that it needed to fill a £22billion “black hole” in the public finances.
Ms Reeves is said to have since identified a far larger £40billion funding gap which she will seek to plug to protect key departments from real-terms cuts and put the economy on a firmer footing.
Mr Stride said Labour’s claims of the black hole are a “smoke screen”, as a raft of tax increases is expected in Wednesday’s fiscal statement.
Discovery of the “black hole” in the weeks following July’s election led to Ms Reeves making a series of what she called “difficult decisions” to close the gap, including the move to means-test winter fuel payments.
Mr Stride said: “This £22billion black hole is simply a smoke screen to try and disguise the fact that – whereas in the general election the Government said we shouldn’t expect lots of tax increases – now the general election is over, they knew all along that with their spending plans they were going to have to raise taxes quite dramatically.”
He added: “This is a smoke stream to try and disguise that.”
In late July Ms Reeves announced the payment would become means-tested, a change in policy that was expected to reduce the number of pensioners in receipt of the benefit by 10m.
She told the Commons at the time that she was “making the difficult decision that those not in receipt of Pension Credit or certain other means-tested benefits will no longer receive the winter fuel payment from this year onwards”.
Meanwhile, the latest figures from the Department for Work and Pensions (DWP) show the number of approved claims for Pension Credit decreased in the five weeks following the Government’s announcement that the payment would be means-tested.
Data obtained from the DWP through a Freedom of Information request shows that 11,310 claims for Pension Credit were approved in the five weeks leading up to July 29 2024, whereas 10,938 claims were approved in the five weeks after that date.
The DWP recently confirmed that nearly 78 per cent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days. This means older people on a low income making a new claim this month could receive their first payment and any arrears by the end of December.
It’s crucial for older people on a low income – single, married or cohabiting – to make sure they are claiming all the additional financial support they are entitled to this winter to help offset the higher cost of living during the colder months. The recent change to eligibility for the Winter Fuel Payment means that millions of pensioners will miss out on annual payments of between £100 and £300 – unless they are in receipt of an income-related benefit such as Pension Credit.
New claims for Pension Credit made before December 21, 2024 which turn out to be successful, will also qualify for a backdated Winter Fuel Payment.
The most under-claimed benefit, specifically aimed at providing additional financial support for older people on a low income – singles and couples, is Pension Credit. Some 1.4m older people across Great Britain, including more than 125,000 living in Scotland, are currently receiving the means-tested benefit that can provide £3,900 (on average) in extra support.
However, the latest figures from the DWP suggest there are still 760,000 eligible pensioners not claiming the benefit they are entitled to.
Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax.
An award of just £1 per week is enough to unlock other support.
Below is an overview of the benefit, including who should check eligibility, how to go about it, how much you could get and where to get help filling in the form.
Who can claim Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.
This is £218.15 for a single person and £332.95 for a couple – this amount could be higher if you’re disabled, a carer or have certain housing costs – find out more here.
You can only get Savings Credit if:
- you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
- you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you get?
Guarantee Credit tops up your weekly income to:
- £218.15 for a single person
- £332.95 for a couple (married, in a civil partnership or cohabiting)
You might be able to get more than this if you’re disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
- £17.01 a week for a single person
- £19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline 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 details about claiming Pension Credit can be fond on GOV.UK here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- 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 or Winter Fuel Payments
- 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 under 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 State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
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earnings, benefits and pensions
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savings and investments
You’ll need the same 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 summary screen shows 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.
All you have to do then 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 out 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:
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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.
You will need:
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your National Insurance number
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information about your income, savings and investments
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your bank account details, if you’re applying by phone or by post
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.
Apply online
You can use the online service if:
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you have already claimed your State Pension
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there are no children or young people included in your claim
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.