DWP drive to sign up older Brits for £3,900 pension benefit leaves 760,000 in the cold this winter

A quiet update to Department for Work and Pensions (DWP) guidance has revealed more than 760,000 households of older Brits are set to miss out on the Winter Fuel Payment this year, even though they qualify for the benefit which is worth up to £300. This is in spite of a large campaign to increase the sign-up rate and help the lowest-income household keep their homes warm.

Low-income pensioners must now apply for Pension Credit, a benefit worth an average of £3900 to claimants, to receive help with their heating costs. Labour made the decision in July to means-test the £300 cash boost shortly after taking office and discovering a "£22 billion black hole" in the public finances left by the previous government - despite 880,000 low-income Brits failing to claim the benefit at the time.

It emerged yesterday that the policy to means-test the Winter Fuel Payment would plunge roughly 200,000 pensioners into relative poverty by the end of Labour's first term in office, according to figures released by DWP boss Liz Kendall MP. The government's hope. She noted that the cut's projected impact "does not take into account any impacts of the measures we are taking to increase Pension Credit take-up."

READ MORE: DWP boss divulges vast scale of pensioner poverty baked into Labour policy

The DWP's internal modelling states that 50,000 more pensioners will slip into financial hardship each year as a direct result of the policy. However, this figure could be offset by the apparent uptake of Pension Credit by a further 120,000 households since Labour announced that the Winter Fuel Payment would no longer be universal.

Despite the relatively large 13 per cent fall in the government's estimate of pensioners missing out on Pension Credit, this updated figure was released with little fanfare, in an online update to 'Pension Credit toolkit: advice and guidance for stakeholders'. But with 760,000 poorer pensioners facing higher heating costs, while missing out on the previously universal benefit, there will be little to celebrate for many this winter.

To receive the benefit and the Winter Fuel Payment, your income must be below a weekly threshold of £173 a week for individuals, or £236 for couples. The measure is forecast to save the nation's finances around £1.4 billion every year, but has drawn sharp criticism from pension poverty campaigners over fears that older Brits will be forced to make difficult decisions over the next few months.

Speaking to reporters at the G20 in Brazil Prime Minister Sir Keir Starmer said: “We’ve had a campaign to drive up pension credit, to get more pensioners on to pension credit, which obviously is not only a guarantee of the winter fuel allowance, but also gives the credit itself.

He also said: “Pensioners will be better off because we’ve stabilised the economy.”