Thousands of pensioners could miss out on this year’s winter fuel payments of up to £300 if they do not apply for a key benefit in time.
Chancellor Rachel Reeves announced in July that winter fuel payments will now be means tested in a bid to save £1.3bn this year and £1.5bn in future years. According to Department for Work and Pensions (DWP) this could force 100,000 people into poverty, while as many as 760,000 could face higher heating costs.
Under the new rules, only elderly people in receipt of the pension credits benefit will be able to receive the fuel payment, prompting calls for people to check if they are eligible and sign up in time for this winter.
“We continue to urge anyone who thinks they may be entitled to Pension Credit to check now,” pensions minister Emma Reynolds said. In an interview with BBC Radio West Midlands, prime minister Sir Keir Starmer said: “There are a number of people who are entitled to pension credit who aren’t claiming it, and it’s very important that they take up that entitlement.”
Here, Yahoo News explains how pension credit works, how it is linked to winter fuel payments and why so many eligible people still haven’t signed up.
What is pension credit?
Pension credit is a benefit for people on low incomes who are over the State Pension age.
It is a separate payment to the State Pension and you can still receive it even if you have other income, savings or own your own home.
Pension credit tops up your weekly income to £218.15 if you’re single and adds £332.95 to your joint-weekly income if you have a partner.
You may receive more if you have other responsibilities and costs, and you could get an extra £81.50 a week if you have a severe disability, and an extra £45.60 a week if you care for another adult.
One of the main reasons the government and charities are encouraging more people to check if they are eligible for pension credit is that it opens up access to several other benefits.
What other help can I receive with pension credit?
Here is a list from the government of other benefits those signed up to pension credit are entitled to.
Housing benefit if you rent the property you live in
Winter fuel payment
Support for mortgage interest if you own the property you live in
Council tax discount
Free TV licence if you’re aged 75 or over
Help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of pension credit
Help with your heating costs through the Warm Home Discount Scheme
Discount on the Royal Mail redirection service if you’re moving house
What is the deadline to claim pension credit?
There is no deadline to sign up for pension credit itself, however, pensioners must apply by 21 December to qualify for winter fuel payments for the winter of 2024/25.
You can start your application up to four months before you reach state pension age.
The money is normally paid automatically from November and most payments are made by Christmas. You’ll receive a letter telling you how much you’ll get and the account it will be paid into (normally the same one used for pension credit and other benefits).
If you do not get a letter, or the money has not been paid into your account by 29 January 2025, the government advises you to contact the Winter Fuel Payment Centre.
You can check if you are eligible for pension credit here on the government’s website, or by calling the Pension Credit Claims Enquiry line on 0800 99 1234. You can also use the government’s pension credit calculator online to see how much you would be entitled to.
Why have so many people still not signed up to pension credit?
As part of an awareness drive in August to encourage more people to check if they are eligible for pension credit and to sign up, the government said that while 1.4 million pensioners are claiming the benefit, an estimated 800,000 eligible for the support were yet to claim.
Despite ministers making these calls to pensioners, a Freedom of Information Act (FOI) request submitted by Financial planning advice network Quilter revealed that the DWP spent just £250,000 on pension credit advertising since making its changes to the winter fuel allowance.
“With the last date for making a backdated claim for pension credit to receive the winter fuel payment now just a month away, it is vitally important that pensioners on low incomes check their eligibility,” said Jon Greer, head of retirement policy at Quilter.
“While it is understandable that the government would not want to undo the savings generated by cutting the winter fuel payment, it is surprising that just £250,000 has been spent on its pension credit advertising campaign given the risks of not reaching the people who need it most. That equates to 0.018% of the £1.4bn it has saved by cutting the winter fuel payment.
Unite the union previously estimated that while the cuts to the winter fuel payment would save the government around £1.4bn this year, if all pensioners entitled to pension credit were to sign up, it would cost the government £2.2bn a year.
During a House of Lords debate in September, Liberal Democrat Lord Palmer of Childs Hill suggested that some pensioners may not be claiming for “reasons of pride, or perhaps because they are unable to cope with the system”.
In response, Labour’s Baroness Sherlock said: “We are running a national marketing campaign on a range of channels, including national print and radio. We will be targeting people of pension age but also friends and family, who can encourage them to apply.
“It can be tough, but sometimes we need to make people understand that there is lots of help out there. They can call the department free of charge and get charities to help them. If people are really stuck, we have a DWP home visiting team, which will visit the vulnerable and help them make a claim.”
