DWP dismisses 'tension' over Winter Fuel Payment cut and Pension Credit increase
by Kieran Isgin, Linda Howard · ChronicleLiveIn a session with the cross-party Work and Pensions Committee on Wednesday, Work and Pensions Secretary Liz Kendall played down any "tension" between the move to restrict Winter Fuel Payments to the neediest elderly and an uptick in older individuals applying for Pension Credit. Chancellor Rachel Reeves had announced in July that Winter Fuel Payments, which could be worth up to £300 a year, will now be extended only to senior citizens receiving means-tested benefits like Pension Credit, Tax Credits (with an annual award above £26), or Universal Credit (for mixed age couples).
The policy shift is set to influence over 10 million people and aims to save roughly £1.5 billion annually for the exchequer. Although additional claims for Pension Credit could diminish potential savings, Ms Kendall showed confidence about this during her committee appearance.
She conveyed to MPs a strong commitment towards ensuring every eligible pensioner claims Pension Credit, amounting to possibly £3,900: "I would like every pensioner who is entitled to Pension Credit, up to £3,900, to get it, yes."
When probed on the potential financial implications for the Government, she insisted: "Regardless, because they are entitled to it. That is what I want to see."
Ms Kendall, when asked about potential discord within the government regarding the issue, told the Daily Record: "For me there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in Pension Credit that they should be entitled to.", reports the Manchester Evening News.
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She also hinted at possible reforms to the way Pension Credit is claimed, saying to MPs: " People don't want to claim, they feel a stigma or are ashamed of claiming. The Pension Credit form is very long."
"We have got more people doing this online now but we have got to solve that and I think it should not be beyond the wit of man or even womankind to actually solve this problem which is why ultimately we have got to make this a much more automatic entitlement."
"So for me there is no tension because I am going to move heaven and earth to do what I can to stop that because it is not right."
Meanwhile, the government has been criticised for reducing eligibility for the Winter Fuel Payment, with opposition MPs urging a review of the policy. The Social Security Advisory Committee, an independent expert group advising the Department for Work and Pensions (DWP), has suggested that the savings from limiting the benefit to only the most needy pensioners are unclear and might be offset by more Pension Credit claims.
Who qualifies for Pension Credit?
Pension Credit is available in two forms: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age (currently 66).
Your weekly income should fall below the minimum amount that the UK Government considers necessary for living. This minimum is set at £218.15 for single individuals and £332.95 for couples.
These amounts may increase if you're disabled, a carer, or have certain housing costs.
Savings Credit is only accessible under specific conditions:
- you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
- you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you potentially receive?
The potential amount you could receive from Guarantee Credit tops up your weekly income to a certain level. You might qualify for more if you're disabled, a carer, or have certain housing costs.
Savings Credit can provide up to a certain amount, with the exact sum depending on your income and savings. Any income from savings and capital over £10,000 is considered.
Checking eligibility
To check eligibility, use the calculator on GOV. UK, where you'll need details of your income, savings and investments, and partner's details if applicable.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions - State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
After answering a series of multiple-choice questions, a summary screen will display your responses, allowing you to revise any answers before submitting. The Pension Credit calculator then reveals how much benefit you could receive each week.
All you need to do is follow the link to the application page to find out exactly what you will receive from the DWP, including access to other financial support. There's also an option to print off the answers you provide using the calculator tool to help you fill in the application form quicker without having to search for the same details again.
Try the Pension Credit Calculator for yourself or a family member to ensure you're receiving all the financial support you're entitled to claim. How to make a claim: You can start your application up to four months before you reach State Pension age.
How to make a claim
You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
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