As winter approaches, pensioners may need extra support to cope with rising energy bills. The Winter Fuel Payment is a government initiative designed to assist with heating costs during the cold months. However, recent changes to eligibility have made it more difficult for some to qualify for this financial help. Here’s everything you need to know about the Winter Fuel Payment and how the rules have changed for 2024.
What is the Winter Fuel Payment and How Have the Rules Changed?
The Winter Fuel Payment is a benefit previously available to all pensioners, designed to help with winter heating costs. However, in July 2024, the government announced that future payments in England and Wales would only be available to those on low incomes who are already receiving specific benefits, such as Pension Credit.
This shift means that over 10 million pensioners will no longer receive the payment starting from winter 2024. Critics, including MPs, unions, and charities, have expressed concern about this change, arguing that many pensioners on a relatively low income, who may not claim Pension Credit despite being eligible, will miss out.
How Much is the Winter Fuel Payment Worth?
The amount of the Winter Fuel Payment depends on your age and the benefits you receive:
- £200 for individuals born between 23 September 1944 and 22 September 1958, if they are on qualifying benefits.
- £300 for those born before 23 September 1944, and on qualifying benefits.
For couples claiming joint benefits, only one person will receive the payment.
How is the Winter Fuel Payment Linked to Pension Credit?
The Winter Fuel Payment is usually paid automatically to those eligible. However, the majority of those who qualify for this payment will only receive it if they first claim Pension Credit, a state pension top-up for people on low incomes.
Pension Credit can also unlock other financial support, including discounts on council tax, a free TV licence for those over 75, and help with NHS costs. Despite the importance of this benefit, it’s estimated that 760,000 eligible pensioners fail to claim Pension Credit.
You may be eligible for Pension Credit if you are above state pension age and have a weekly income of less than £218.15 (or less than £332.95 for couples). Your savings may also be considered.
When Do You Need to Apply?
The deadline for applying for Pension Credit in order to receive the Winter Fuel Payment for winter 2024 is 23:59 on 21 December 2024. If you don’t submit your application by this date, you’ll miss out on the payment. The application process is online, and the form requires detailed information on your income and savings.
When Will Winter Fuel Payments Be Made?
Winter Fuel Payments are usually made automatically in November or December. However, the high number of new claims due to the rule change may cause delays. The Department for Work and Pensions (DWP) reported a backlog of 90,000 claims in mid-November, with 9,000 claims cleared weekly. The DWP has deployed an additional 500 staff to process these applications more quickly, but delays may persist through the rest of 2024.
What Will the Rule Change Mean for the Poorest Pensioners?
The government estimates that 1.9 million pensioners—around 15%—are already living in relative poverty, with an income less than 60% of the median. The changes to Winter Fuel Payments are expected to push an additional 50,000 pensioners into relative poverty annually, which is a concerning trend.
Work and Pensions Secretary Liz Kendall has confirmed that means-testing Winter Fuel Payments was not a decision the government took lightly but was seen as a necessary step to target support to those who need it most.
What About Pensioners in Scotland and Northern Ireland?
- Northern Ireland: The Stormont government will provide a one-off £100 payment to help with heating costs for pensioners affected by the changes.
- Scotland: The Scottish Government will introduce a new Winter Heating Payment for all Scottish pensioners from winter 2025. Those eligible for Pension Credit will receive £200 or £300, depending on age, while other households will receive £100. Additionally, extra welfare funding has been allocated for councils to support heating costs.
