Home Finance State pensioners issued letters with free £5,900 as energy boss says 'we're...

State pensioners issued letters with free £5,900 as energy boss says 'we're responsible'


Two million state pensioners are being issued letters to claim up to £5,900 free financial support this winter.

British Gas is writing to older customers to urge them to take up Pension Credit after Labour cut Winter Fuel Payments for those not currently claiming the benefit.

The energy firm said it’s “our responsibility” to offer extra support to elderly customers on top of government help, with an estimated 10 million fewer households set to get a Winter Fuel Payment this year thanks to a rule change.

Under plans announced by Chancellor Rachel Reeves in July, winter fuel payments will be restricted to those receiving Pension Credit, meaning it will be taken away from all but the poorest pensioners in the UK. Previous government rules saw around 11.5 million people receive it, but this will now fall to less than two million this year.

Labour says it is right to means-test the benefit, which is worth up to £300, in order to tackle what it calls a “black hole” in the public finances.

The new rules now mean that you must have been born before September 23, 1958, and be claiming Pension Credit, or certain other benefits to qualify for it.

Pension Credit is worth £3,900 on average per year and it can serve as a gateway to other financial help, including the Winter Fuel Payment. British Gas is now sending letters to around two million people of pension age and over to encourage them to claim the benefit if they are eligible.

In addition, the firm is also reopening its annual winter scheme providing financial help for customers, dedicating around £40 million towards measures like matching debt repayments and support grants.

The company has increased the maximum grant it will hand out from £1,500 to £2,000. As such, if someone qualifies for Pension Credit and extra support from British Gas, they could claim up to £5,900 in financial help this winter.

Chris O’Shea, chief executive of British Gas’ parent firm Centrica, said: “At the end of each week or month there will be those that have little, if any, money left after paying for life’s essentials.

“We are committed to ensuring that all pensioners are fully informed about their eligibility for pension credit, which can make a significant difference in their financial wellbeing.”

Pension Credit tops up your weekly income to £218.15 if you are single, or your joint income to £332.95 if you have a partner. You must live in England, Scotland or Wales and have reached State Pension age to qualify.

The benefit is worth on average £3,900 a year and can open the doors to further financial help, including housing costs, council tax, heating costs through the Warm Home Discount Scheme, cold weather payments and the Winter Fuel Payment, worth up to £300 per household. The benefit can also entitle you to:

  • Support for Mortgage Interest if you own the property you live in

  • a free TV licence if you’re aged 75 or over

  • help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit

  • a discount on the Royal Mail redirection service if you’re moving house

To secure the Winter Fuel Payment for 20245 to 2025, you must apply for Pension Credit by the deadline of December 21, 2024. You can apply any time after you reach State Pension age but your application can only be backdated by three months.

Applications can be made online via the government website, by calling the Pension Credit claim line on 0800 99 1234, or by sending a claim form by post to Freepost DWP Pensions Service 3.

Minister for pensions, Emma Reynolds, said: “Pension credit is a vital benefit. Not only is it worth £3,900 a year on average, but it also acts as a gateway to other benefits. This means even just one pound could passport pensioners to extra help including help with council tax, housing benefit and the winter fuel payment.

“I support British Gas’ campaign to ensure all those who could be eligible are getting this help and urge all pensioners, and their friends and family, to check to see if they or their loved ones could be getting additional support via our online calculator.”

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