The Department for Work and Pensions (DWP) have ruled out reversing the decision to means-test Winter Fuel Payments amid warnings by Labour backbenchers about its impact on vulnerable pensioners. More than 10 million people over State Pension will miss out on the annual heating help this winter, however, during DWP questions in Parliament on Monday, Pensions minister Emma Reynolds blamed the Conservative government’s £22 billion black hole for the decision.
Ms Reynolds urged older people to submit a new claim for Pension Credit before Saturday, December 21 to ensure a backdated Winter Fuel Payment – if their claim is successful. Labour backbencher Neil-Duncan Jordan, who represents Poole, told MPs: “The poorest pensioners in our society are those who are eligible for the Pension Credit but don’t claim it, or just a few pounds above the threshold and they miss out on passported support.”
He continued: “Means testing by its very nature is simply not the best way to get help to those who need it most, so will the minister reconsider the recent decision to means-test the winter fuel allowance?”
The DWP Minister replied: “We won’t reconsider that decision because in a very tight fiscal environment when we inherited a £22 billion black hole from the party opposite, we had to take some very tough decisions.”
Labour MP Rachael Maskell said people in her York Central constituency were going to “really struggle this winter” because of the cut. She asked: “What additional steps will be taken to ensure that those that miss out on the 21st December deadline will still be able to get support to keep warm this winter?”
Ms Reynolds said: “We are working at pace to process those claims. We’ve deployed an additional 500 staff to make sure that those who are on the lowest incomes get the Pension Credit that they need.”
She told the Commons that claims for Pension Credit had more than doubled since the policy was announced on July 29 and that 880,000 pensioners who had been eligible for the benefit did not get it. Ms Reynolds added that the Labour Government had written to 120,000 pensioners on Housing Benefit urging them to apply.
Around 11.6 million people in just over 8m households across Scotland, England and Wales were due to receive the payment of up to £300 this winter, but the rule change will affect some 10m pensioners, including 850,000 in Scotland.
Ministers said those who were close to the threshold of having an income of more than £218.15 a week should still apply for Pension Credit.
Shadow work and pensions secretary Helen Whately said the decision would push hundreds of thousands of State Pensioners into poverty. She asked what advice the Government had for pensioners who were unable to put their heating on this winter.
Work and Pensions Secretary Liz Kendall said: “If (she) cared so much about pensioners in the cold, why did her government leave 880,000 not claiming Pension Credit? Why did she first promise to bring together the merger of Housing Benefit and Pension Credit in 2011, and never deliver?
“This Government is taking action. 42,500 more people are receiving pension credit than when she left government. We are determined to act, perhaps she should apologise for her failure.”
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.
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 receive from DWP?
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 found 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
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own more than one property
-
are self employed
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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.