The Payment Penalty
Claim now for Winter Fuel Payment or risk losing out, says Paul Lewis.
Chancellor Rachel Reeves has taken £4 billion away from people over the age of 66. The Winter Fuel Payment of £200 (£300 aged 80+), paid to everyone over a certain age since 1997, will now only be paid to around 1.5 million households who get pension credit or another means-tested benefit. That will take it away from around ten million pensioners. And the £300 Cost of Living Payment, added to Winter Fuel Payment for the past two winters, will not continue. So even households still entitled to Winter Fuel Payment will get £300 less than previously.
The Chancellor says she needs to save money to fill the black hole in the UK’s finances left by the previous government. The ex-Chancellor Jeremy Hunt disputes that.
The pensioners still entitled to Winter Fuel Payment fall into two groups: single people or couples who receive pension credit; and couples where one is aged 66 or older but the other is under 66. They are not entitled to pension credit but will qualify if the younger one gets Universal Credit, income support or means-tested Jobseeker’s Allowance or Employment & Support Allowance.
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To qualify this year for Winter Fuel Payment, people must have been born before 23 September 1958 and receive, or be entitled to, pension credit; or have a younger partner entitled to one of the other means-tested benefits in the week beginning 16 September 2024.
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More than 800,000 people entitled to pension credit do not claim it. So they should claim now. The income levels to qualify are as follows.
- Reached state pension age before 6 April 2016:
- Single – income below £260.68 a week
- Couple – income below £380.55 a week
- Reached state pension age on 6 April 2016 or later:
- Single – income below £218.15 a week
- Couple – income below £332.95 a week
Carers can claim with incomes £45.60 a week higher than these; those with severe disabilities can claim with incomes £81.50 higher. Call 0800 99 1234 to claim pension credit or ask if you’re entitled. Or check online at entitledto.co.uk or turn2us.org.uk.
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QUESTIONS? Send any questions to Paul.Lewis@radiotimes.com. I cannot answer you personally, but I will reflect them in this column.