People must check their Pension Credit eligibility before December 21 to ensure they receive the Winter Fuel Payment this winter

DWP quietly admits 760,000 households are set to lose £300 Winter Fuel Payment despite qualifying

by · Birmingham Live

A subtle change in the Department for Work and Pensions (DWP) guidelines has revealed that over 760,000 households of older Brits are poised to miss out on the Winter Fuel Payment this year, despite being eligible for the benefit which could provide up to £300. This latest figure comes despite a significant campaign aimed at boosting sign-up rates to assist the lowest-income households in keeping their homes warm.

Low-income pensioners are required to apply for Pension Credit, a benefit that, on average, offers claimants £3900, to receive support with heating costs. Labour decided to means-test the £300 cash boost shortly after coming into power in July, upon discovering a "£22 billion black hole" in the public finances left by the previous government, even though at that time, 880,000 low-income Brits were not claiming the benefit.

It was disclosed yesterday that the policy to means-test the Winter Fuel Payment is expected to push approximately 200,000 pensioners into relative poverty by the end of Labour's first term, based on figures from DWP chief Liz Kendall MP. The government remains hopeful, however, with Kendall noting that the cut's anticipated impact "does not take into account any impacts of the measures we are taking to increase Pension Credit take-up."

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The DWP's internal modelling suggests that each year, due to the policy, an additional 50,000 pensioners will fall into financial hardship, reports the Manchester Evening News. However, this figure could be balanced by the uptake of Pension Credit by another 120,000 households since Labour announced the Winter Fuel Payment would no longer be universal.

Despite the government's drive to sign up older Brits for the Pension Credit top-up and receive the Winter Fuel Payment, three quarters of a million pensioners are still failing to claim the benefit (Image: Getty Images/iStockphoto)

Despite a significant 13 per cent drop in the government's estimate of pensioners missing out on Pension Credit, this revised figure was quietly released in an online update to 'Pension Credit toolkit: advice and guidance for stakeholders'. Yet, with 760,000 less affluent pensioners facing increased heating costs while missing out on the previously universal benefit, many will find little to cheer about this winter.

To qualify for the benefit and the Winter Fuel Payment, your income must be below a weekly threshold of £173 for individuals, or £236 for couples. The measure is expected to save the national budget around £1.4 billion annually, but has attracted strong criticism from pension poverty campaigners over concerns that older Brits will face tough choices in the coming months.

Speaking to journalists 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: ".

He also made it clear, stating: "Pensioners will be better off because we've stabilised the economy."