The Chancellor is restricting the Winter Fuel Payment
Chancellor Rachel Reeves addressed the House of Commons on Monday 29th July, outlining the Treasury’s spending review findings, and setting out several ways in which the new Government plans to address the “black hole” left in public finances by the estimated £22 billion pound overspend of the previous Government. The measures the Chancellor announced included asking all government departments to absorb at least a £3 billion reduction in costs, abandonment of the controversial Rwanda immigration scheme and the scrapping the proposed Stone Henge tunnel project.
Winter Fuel Payments, which have in recent years been paid to all pensioners tax-free, are to be restricted to those on Pension Credit and certain other benefits only this year. CSPA General Secretary, Sally Tsoukaris, said
“Whilst energy bills have reduced since their peaks in 2021 and 2022, our members and others are finding that prices have remained relatively much higher than they were just a few years ago.
“We know only too well that far too many pensioners who are eligible to receive Pension Credit payments, and other benefits, are simply not applying for them for a whole host of reasons, with estimates of the numbers in this category being in the hundreds of thousands. We call upon the Government to widen the net significantly to ensure that all those who are in need of additional support to be able to heat their homes this Winter can benefit from Winter Fuel Payments and not be forced to choose between heating and eating”.
In November 2023, an additional pensioner cost of living payment of £300 was paid with the Winter Fuel Allowance, but it is very unlikely to be applied again this year. The regulator OffGem announced, earlier this year on the 23rd February, that the regulated energy price cap was to reduce to £1,690 from the 1st April, down from its peak of over £4,000.
To check whether you, or someone you care about, may be eligible for Pension Credit, a free TV license or any other benefits, we recommend the help and advice that is available from our partners at Independent Age (www.independentage.org/get-advice/money/benefits/pension-credit or telephone 0800 319 6789) and Age UK (www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/pension-credit/ or telephone 0800 678 1602).
To claim Pension Credit, you can either:
- Claim online on GOV.UK (if you already claim State Pension and there aren’t any children or young people included in your claim), or
- call the Pension Credit claim line on 0800 99 1234 and they can fill in the application for you over the phone (lines are open Monday to Friday, 8am-6pm).
It can be helpful to have the following details to hand before you get started:
- your National Insurance number
- your bank account details
- information about your income, savings and investments
- information about your pension (if you have one)
- details of any housing costs you have (such as a mortgage, interest payments or service charges)
- your partner’s details, if you have a partner.
