Work and Pensions Secretary Liz Kendall has dismissed any “tension” between plans to limit Winter Fuel Payments to the poorest pensioners and an increase in older people claiming Pension Credit. Winter Fuel Payments, worth up to £300 annually, will now only be issued to older individuals receiving means-tested benefits such as Pension Credit, Tax Credits (with an annual award of over £26) or Universal Credit (for mixed age couples), as announced by Chancellor Rachel Reeves in July.
This change will affect over 10 million, saving the public purse around £1.5 billion a year. Despite potential savings falling as more people apply for Pension Credit, Ms Kendall expressed her comfort with this during her appearance before the cross-party Work and Pensions Committee on Wednesday.
She told the group of MPs that she aims for a 100% take-up of Pension Credit “regardless” of its impact on the Government’s efforts to address public finance issues. She stated: “I would like every pensioner who is entitled to Pension Credit, up to £3,900, to get it, yes.”
When asked if this would be the case regardless of costs to the Government, she added: “Regardless, because they are entitled to it. That is what I want to see.”
When questioned about possible tensions within the government on the issue, Ms Kendall responded: “For me there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in Pension Credit that they should be entitled to.”, reports the Daily Record.
Additionally, she alluded to potential changes in how Pension Credit is accessed, telling MPs: ” People don’t want to claim, they feel a stigma or are ashamed of claiming. The Pension Credit form is very long.”
“We have got more people doing this online now but we have got to solve that and I think it should not be beyond the wit of man or even womankind to actually solve this problem which is why ultimately we have got to make this a much more automatic entitlement.”
“So for me there is no tension because I am going to move heaven and earth to do what I can to stop that because it is not right.”
Meanwhile, ministers have come under fire for cutting back on the Winter Fuel Payment eligibility, with MPs from the opposition calling for a rethink of the policy. In opposition, the Social Security Advisory Committee, an independent panel of experts who provide advice to the Department for Work and Pensions (DWP), has indicated the savings made by restricting the benefit to only the most impoverished pensioners remain ambiguous and could be negated by an increased number of claims for Pension Credit.
Who is eligible for Pension Credit?
Pension Credit comes in two forms: Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must be of State Pension age (currently 66). Your weekly income should be less than the minimum amount the UK Government deems necessary for living.
This minimum is set at £218.15 for single individuals and £332.95 for couples. These amounts may be higher if you’re disabled, a carer, or have certain housing costs.
Savings Credit is only available under specific conditions:
- 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 potentially receive?
Guarantee Credit supplements your weekly income to a certain level. You might be eligible for more if you’re disabled, a carer, or have certain housing costs.
Savings Credit can provide up to a certain amount. The exact amount you’ll receive depends on your income and savings. Any income from savings and capital over £10,000 is taken into account.
Checking eligibility
To utilise the calculator on GOV. UK, you’ll need details of:
- earnings, benefits and pensions
- savings and investments
You’ll require the same information for your partner if you have one. You will be presented with 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’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.
All you have to do next 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.
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.