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Winter fuel payments scrapped for millions – check to see if you qualify for cash
Only those on specific benefits will qualify for up to £300 in heating bill help
MILLIONS of pensioners could be left in the cold this winter as Chancellor Rachel Reeves announced the universal winter fuel payments will be slashed.
Only those on Pension Credit, or other means-tested benefits, will qualify for up to £300 in energy bill help starting this year.
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Until now, winter fuel payments have been made available to everyone above state pension age, which is currently 66 for both men and women.
Ms Reeves said it was a "difficult decision" and not one she wanted to make.
Her comments came as she revealed plans to tackle a projected overspend of £22 billion.
She told the Commons: "The scale of the situation we are dealing with means incredibly tough choices.
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“From this year onwards, the Government will continue to provide winter fuel payments worth £200 for households receiving pension credit, or £300 for households in receipt of pension credit with someone over the age of 80.
"Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make, but these are the necessary and urgent decisions that I must make.”
Households with someone over the state pension age receiving means-tested benefits including Pension Credit, Universal Credit and income support will still receive the payment.
It will be worth £200 for eligible households, or £300 for eligible households with someone aged over 80.
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That policy is expected to reduce the number of pensioners in receipt of the payment by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.
The winter fuel payment is designed to help pensioners pay for their energy bills over the winter.
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This is typically when households use more energy due to the colder weather.
This has led charities and organisations to express their concerns over scrapping universal winter fuel payments.
Gillian Cooper, director of energy policy at Citizens Advice, said the move could put low-income pensioners at risk.
She added: "The current Winter Fuel Payment is not well targeted and is too low to make a real difference to pensioners who need help most.
"As we go into this winter, we need to see targeted support with energy bills for all those in desperate need, including low-income families and pensioners.
“Changes to eligibility to winter fuel payment will create some uncertainty. We will need to see better support for people to understand how this change impacts them, and how they can continue accessing the help they need.”
Meanwhile, Martin Lewis, founder of MoneySavingExpert, said the targeting of the help is "too narrow" with energy bills expected to rise again this autumn.
He said: "Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.
"The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double that pre-crisis, at levels unaffordable for millions."
Charity Director at Age UK Caroline Abrahams also said: "We strongly oppose the means-testing of Winter Fuel Payment (WFP) because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the either end of the spectrum well-off older people will scarcely notice the difference – a social injustice.
What is Pension Credit?
Pension credit tops up your weekly income to £218.15 if you’re single or your joint weekly income to £332.95 if you have a partner.
If your income is lower than this, you should be eligible for the benefit.
The threshold may rise for those getting other benefits like carer’s allowance or attendance allowance, meaning more people are eligible than they think.
Pension credit can also open the door to other support including housing benefit, cost of living payments and council tax reductions.
You could get the "Savings Credit" part of pension credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
This part of pension credit is worth £17.01 for single people or for couples, £19.04.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
You can find out more about Pension Credit including how to apply in our guide.
How do I apply for pension credit?
YOU can start your application up to four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you'll need to be with them when they do.
You'll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)
If you claim after you reach pension age, you can backdate your claim for up to three months.
How much is the winter fuel payment?
Payments last year were worth between £300 and £600, depending on your specific circumstances.
This is because the amount included a "Pensioner Cost of Living Payment" - between £150 and £300.
However this year, it will be worth £200 for eligible households, or £300 for eligible households with someone aged over 80.
That means depending on your circumstances you could receive up to £300 in free cash.
Who is eligible for the winter fuel payment?
Following today's announcement, only those in receipt of pension credit, or other means-tested benefits, will receive the winter fuel payment from this year onwards.
The benefits that will entitle you for the payment are as follows:
- Pension Credit
- Universal Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment
- Support Allowance
In most cases, under the old rules, you would get a winter fuel payment if you were born before September 25, 1957.
You needed to live in the UK, but you may have also qualifed if you moved to a specific country before January 1, 2021, and have a link to the UK.
This includes having lived or worked in the UK or having family in the UK. The list of eligible countries was as follows:
- Austria
- Belgium
- Bulgaria
- Croatia
- Czech Republic
- Denmark
- Estonia
- Finland
- Germany
- Hungary
- Iceland
- Ireland
- Italy
- Latvia
- Liechtenstein
- Lithuania
- Luxembourg
- Netherlands
- Norway
- Poland
- Romania
- Slovakia
- Slovenia
- Sweden
- Switzerland
In some circumstances, you wouldn't be eligible for the winter fuel payment, even if you were born before September 25, 1957.
You wouldn't qualify if:
- you have been in hospital getting free treatment for more than a year
- you need permission to enter the UK and your granted leave says that you cannot claim public funds
- you were in prison for the whole of the week of 18 to 24 September 2023
Those living in a care home were also not eligible for a winter fuel payment, if both of the following applied:
- you get pension credit, income support, income-based jobseeker’s allowance (JSA) or income-related employment and support allowance (ESA)
- you lived in a care home for the whole time from June 26 to September 24, 2023
Do I need to apply for the payment?
It isn't known if under the new rules, you will need to apply for the payment, or if it will be made automatically.
Under the old system, you didn't have to apply to claim the winter fuel payment, say for example if you receive any of the following benefits:
- state pension
- pension credit
- attendance allowance
- personal independence payment (PIP)
- carers allowance
- disability living allowance (DLA)
- income support
- income-related employment and support allowance (ESA)
- income-based Jobseeker’s allowance (JSA)
- awards from the war pensions scheme
- industrial injuries disablement benefit
- incapacity benefit
- industrial death benefit
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If you were not on one of the above, you needed to claim if either of the following applied:
- you've not received the winter fuel payment before
- you've deferred your state pension since your last winter fuel payment
What energy bill help is available?
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don't need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you're struggling.
Get in touch with your energy firm to see if you can apply.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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