Thousands of state pensioners who’ve lost their Winter Fuel Payment due to government cutbacks might have a chance to reclaim it. The Department for Work and Pensions (DWP) is reaching out to older individuals on Housing Benefit since they could be eligible for Pension Credit too, which would reinstate their entitlement to the fuel subsidy.
The move to means-test the Winter Fuel Payments, which can total up to £300, has been met with considerable criticism. This change will slash the number of pensioners receiving the payment from 11.4 million to just 1.5 million, primarily those on Pension Credit, saving about £1.4 billion this year.
Currently, only recipients of one of seven means-tested benefits are eligible for this heating support, namely: Pension Credit, Universal Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Income Support, Child Tax Credit, and Working Tax Credit.
Amid these changes, there’s an increasing call for the DWP to clarify a compensation package for WASPI (Women Against State Pension Inequality) by Christmas.
In communications to the Work and Pensions Select Committee, Work and Pensions Secretary Liz Kendall revealed: “We have written to 120,000 pensioners in receipt of Housing Benefit who may also be entitled to Pension Credit to encourage them to claim. In the longer term, we are working to bring together the administration of Pension Credit and Housing Benefit, to ensure that pensioner households receive the benefits to which they are entitled.”, reports Birmingham Live.
The DWP chief has highlighted the government’s efforts to support vulnerable households, including pensioners, with additional financial aid: “We have also put in place extra financial support for the most vulnerable households including pensioners through the £150 Warm Home Discount to help with energy bills, the Cold Weather Payments and our extension of the Household Support Fund.”
She acknowledged that changes to the Winter Fuel Payment could lead to an estimated 50,000 more pensioners facing relative poverty this winter, with figures potentially reaching between 50,000 and 100,000 in future years. However, she noted that these projections do not consider the likely increased uptake of Pension Credit, which would mitigate those numbers.
Since April 2024, the DWP has processed a significant number of Pension Credit claims: “She admitted that the restrictions to the Winter Fuel Payment are forecast to push 50,000 more pensioners into relative poverty this winter and between 50,000 and 100,000 in subsequent years. But the DWP boss pointed out this did not take into account the increased take-up of Pension Credit which would then reduce those figures.Since the start of April 2024 the DWP has received 215,200 Pension Credit claims and made decisions on 161,800 of them, with 81,000 people awarded the benefit and the other 81,500 rejected. This includes 42,500 claims being approved in the 16 weeks since the Chancellor’s announcement to change the rules on the fuel payment in July.Ms Kendall explained: ” The approval rate saw a boost following the Chancellor’s July announcement regarding fuel payment rule changes, with 42,500 claims approved in the subsequent 16 weeks.
Ms Kendall provided further details on the expected impact of the policy on pensioner poverty: “The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024/25, 2025/26 and 2027/28, instead. The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026/27, 2028/29 and 2029/30.”
“For all other measures of poverty it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024/25 to 2029/30. The poverty impacts represent the change in the numbers in poverty as a result of the policy change only. They are not an estimate of the change in overall poverty each year or over time and should not be added together or interpreted as cumulative data.”
“It’s important to note that this modelling is subject to a range of uncertainties meaning the poverty impacts are rounded to the nearest 50,000 individuals which should be taken into account when interpreting the results. This means that small variations in the underlying numbers impacted can lead to much larger changes in the rounded headline numbers. It should be noted that the modelling does not take into account any impacts of the measures we are taking to increase Pension Credit take-up and to ensure pensioners get the benefits to which they are entitled.”
The Winter Fuel Payment stands at £200 for individuals born between September 23, 1944, and September 22, 1958, while those aged over 80, born before September 23, 1944, are entitled to a slightly higher sum of £300. Keep updated with the latest headlines via BirminghamLive WhatsApp and join our exclusive community for the most recent updates.
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