Thousands of pensioners are applying for Pension Credit which would give them back their Winter Fuel Payment (Image: Eleganza / GettyImages)

Thousands of pensioners make DWP claim that could win back Winter Fuel Payment

Pension Credit claims surge as it's one of the few remaining ways to access the Winter Fuel Payment

by · Birmingham Live

Thousands of pensioners are applying to the DWP for additional support that could win them back their Winter Fuel Payment. Under new restrictions imposed by Chancellor Rachel Reeves, the allowance is now only available to those who receive Pension Credit and some other means-tested benefits - a move that has cut the numbers who are eligible by 10 million.

The Government says it is encouraging more older people to put in a claim for Pension Credit, which is worth an average of £3,900 a year and would give them back their Winter Fuel Payment. Around 880,000 people are thought to be missing out on the top-up benefit, with this expected to fall to 780,000 after campaigns to raise awareness. Being on a State Pension alone is no longer sufficient to qualify for the fuel allowance.

Department for Work and Pensions figures released today show the Government has received around 74,400 Pension Credit claims in the eight weeks since July 29, when Rachel Reeves announced means-testing for the payment. This is up from 29,500 claims in the eight weeks before the announcement.

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Work and Pensions Secretary Liz Kendall has previously urged pensioners to check if they are eligible for the benefit. "It's easier than ever to check if you are eligible, including with our online calculator, and if your circumstances have changed since the last time you looked I urge you to check again," Ms Kendall said during her department's Pension Credit Week of Action, held during the first week of September.

"Thousands of pensioners are missing out on Pension Credit worth on average £3,900 per year. That needs to change."

At her party's annual conference, Ms Kendall told activists and delegates her Government had "done more to help the poorest pensioners in the last two months than the Tories did in 14 years", including "the biggest ever drive to get pensioners on Pension Credit, backed by our commitment to the pensions triple lock."

But conference attendees voted to stop the cuts to the Winter Fuel Payment after a debate on Wednesday. A successful union-backed motion urged the Chancellor to "reverse the introduction of means-testing" for the allowance

Unite the Union moved the motion and its general secretary Sharon Graham won rounds of applause as she said: "This is not what people voted for. It is the wrong decision and needs to be reversed. We are the sixth richest economy in the world. We have the money. Britain needs investment, not austerity mark two. We won’t get any gold badge for shaving peanuts off our debt."

Alan Tate, of the Communication Workers Union (CWU), said the cut had "overshadowed" the work of the new Labour Government. He said: "The CWU has been inundated with emails and calls from our retired members worried about choosing between heating and eating."

Prime Minister Sir Keir Starmer responded in a Channel 4 News interview after the motion: "I do understand how, you know, colleagues in the Labour movement feel about this. This is clearly a difficult decision but a motion at conference doesn’t dictate Government policy."

A Government spokesperson said: "Given the dire state of the public finances we have inherited, it’s right that we target support to those who need it most. Over a million pensioners will continue to receive the Winter Fuel Payment, while many others will also benefit from the £150 Warm Home Discount from October to help with their energy bills over winter.

"We are seeing increased demand in Pension Credit claims and continue to urge pensioners to check their eligibility to make sure as many people in need can access this support."

Asked if mass take-up could wipe out the savings from restricting the payment, a Downing Street spokeswoman said: "It is right that anyone eligible for income- related benefits or Pension Credit is receiving it, and that's why we're making efforts to ensure that those who are eligible are converted on to it."

The annual tax-free Winter Fuel Payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes in winter. Winter Fuel Payments rose to 11.6 million last year, figures show, which is 214,000 more than the 11.4 million in 2022-23. It has steadily risen from 11.1 million in 2020-21, statistics released by the Department for Work and Pensions indicate.

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