A controversial change to Winter Fuel Allowance means millions of pensioners will no longer get a payment of between £250 and £600 to help with their energy bills this winter.
Labour Chancellor Rachel Reeves has announced a change to the Winter Fuel Allowance payments which means the money is no longer automatically paid to state pensioners.
Currently, anyone born before 1957 and who isn’t in hospital or prison will receive the payment automatically each winter.
But the government is changing the benefit to be paid only to state pensioners who qualify for one of six existing benefits.
The stricter eligibility rules have been brought in, Ms Reeves said, in a bid to save £1.5bn from the financial ‘black hole’ Labour claims has been inherited from the previous government.
Now, those on the state pension will need to claim at least one of six benefits in order to qualify for the winter fuel payments.
Those on: Pension Credit, Universal Credit, Income Support, Income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments.
Pension Credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges.
Income Support is a legacy benefit, which is to say only people who have previously claimed it are still being paid the benefit, with new claims now being turned into Universal Credit instead.
Income based Jobseeker’s Allowance and Income-related Employment and Support Allowance (ESA) are also both legacy benefits being replaced by Universal Credit.
But state pensioners are not eligible for Universal Credit due to the age limit. There is an exception whereby one part of a couple is still under state pension age.
Revenue Benefits says: “There is a routine exception to the general rule for couples where one member of the couple is below state pension credit qualifying age and the other member has already reached that age. This scenario is often referred to as a ‘mixed age couple’. As a result, mixed age couples are entitled to universal credit.”
Chancellor Rachel Reeves announced: “Around £1.5 billion will be saved per year by targeting Winter Fuel Payments meaning households with someone aged over State Pension age receiving Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments. This will better target support for heating costs at those who need it.”
