The Chancellor has confirmed that cuts will be made to the Winter Fuel Payment system. The Winter Fuel Payment, which also included a Pensioner Cost of Living Payment, offered between £250 and £600 depending on the claimant's eligibility during the winter period to assist those who would face higher energy bills.
Rachel Reeves informed the House of Commons today (July 29) that it was a challenging decision but was "the responsible thing to do". Previously, these payments were accessible to all individuals above the State Pension Age, but now it will be more limited.
Ms Reeves stated in the Commons that "Those not in receipt of pension credit or certain other means tested benefits will no longer receive the winter fuel payment from this year onward".
- Read More: DWP issues fraud warning to Universal Credit and other benefit claimants who have a partner
Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter
Benefits no longer eligible for Winter Fuel Payments
Following the Chancellor's announcement, only those claiming Pension Credit or some means-tested benefits will definitely qualify for Winter Fuel Payments. This implies that the following benefits will not make a claimant eligible this winter:, reports the Manchester Evening News.
- Attendance Allowance
- Bereavement Support Payment
- Carer's Allowance
- Disability Living Allowance
- New style Employment and Support Allowance
- Personal Independence Payment (PIP)
- State Pension
Winter Fuel Payment now "too narrow".
Personal finance expert Martin Lewis has criticised the new Winter Fuel Payments as being "too narrow". He commented: "The targeting of Winter Fuel Payments is too narrow with the winter we have coming."
"Pensioners were already due to get less as this will be the first time since winter 2022 they haven't got the up to £300 extra winter fuel cost of living top-up. The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions."
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group just those on benefits and Pension Credit. Yet again, those just above the thresholds will be hardest hit."
"This is often justified as there's a 'lack of household income data' to allow other targeting. However, there's a usable precedent from the emergency energy crisis measures announced in April 2022, which I'd urge the Government to look at."
"Then, a payment was made to homes in council tax bands A to D as an imperfect but workable proxy for lower household incomes. That'd allow an additional group of lower to middle-income pensioners to keep the payments and mitigate bill shocks. Councils' discretionary funds could also be funded as in April 2022, for the limited numbers who still need help but don't qualify."
"Plus, with this announcement, the Government has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don't get it, are informed, educated and helped through the process. It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner and if possible proactively and personally contact people."
"Pension Credit is a crucial gateway benefit, giving access to a host of other entitlements, and now with the link to the Winter Fuel Payment, it makes it even more important to ensure fewer miss out."
Join our WhatsApp communities
ChronicleLive is now on WhatsApp and we want you to join our communities.
We have a number of communities to join, so you can choose which one you want to be part of and we'll send you the latest news direct to your phone. You could even join them all!
To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.
No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners.
If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our privacy notice.
Join the ChronicleLive Breaking News and Top Stories community
Join our Court & Crime community
Join the Things to do in Newcastle and the North East community
Join our Northumberland community
