Pensioners urged to check winter fuel allowance eligibility after cuts

Pensioners are being encouraged to check their eligibility for the winter fuel allowance after the universal payments were discontinued. Chancellor Rachel Reeves announced last month that the tax-free benefit, which assists older individuals with increased heating costs in winter, would now be restricted to those on pension credit. This unexpected decision aims to address a £22bn deficit in public finances, a shortfall Labour claims the Conservatives concealed during their tenure.

The new government has launched a campaign to inform people of these changes, concerned that many eligible pensioners have not yet claimed. Previously, the allowance was available to all individuals above state pension age. Now, it will only be accessible to those over state pension age who receive pension credit or other means-tested support. This adjustment reduces the number of beneficiaries from 11.4 million to 1.5 million.

The payment amounts to £200 for households with recipients under 80 and £300 for those with recipients over 80. Although approximately 1.4 million pensioners already receive pension credit, an estimated 880,000 households that qualify have not yet claimed, according to the Department for Work and Pensions. The government’s campaign aims to identify these households and encourage pensioners to apply by 21 December, the deadline for backdated claims to receive the Winter Fuel Payment. The initiative will address misconceptions that might prevent applications, such as the belief that having savings, a pension, or owning a home excludes one from receiving pension credit.

The campaign follows warnings from experts about an average household energy bill increase of £146 in October, the latest spike since the global energy crisis triggered by the Russian invasion of Ukraine.

Defending the cuts, Ms Reeves emphasised the necessity of difficult decisions due to the “dire state of the public finances” inherited from the previous administration. She mentioned that the government continues to support pensioners by maintaining the triple lock. However, Laura Trott, the shadow chief secretary to the Treasury, argued that the plans would heighten pensioner poverty. She criticised ministers for conceding to union demands in recent strike negotiations and called for the Chancellor to release an internal impact assessment to reveal the true consequences of the policy.