We strongly oppose the decision to restrict #WinterFuelPayment eligibility to only those in receipt of Pension Credit as it means 89% of Scottish pensioners will go without this vital support to stay warm this winter.
Statistics published today by the DWP, reveal that just 65% of older people who are entitled to Pension Credit were receiving the payment between April 2022 and March 2023.
Independent Age estimate that in Scotland this means that up to 70,000 older households could be missing out on the Pension Credit they are entitled to, with a combined value of £140 million.
We know there has been an increase in applications since the UK Government announcement that the Winter Fuel Payment would be means tested, but it is unclear how many of these will result in successful claims.
Both Governments must work together to address the issue of low take-up of Pension Credit and the unacceptably high levels of poverty in later life. Independent Age is urging the UK Government to review and ensure overall adequacy of the social security system for older people, to prevent pensioner poverty.
Alongside calling on the Scottish Government to introduce a pensioner poverty strategy for Scotland – setting out the actions that can be taken alongside with local authorities, to tackle poverty in Scotland.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said:“What is clear from the figures released today is that too many older people living on a low income are still missing out on Pension Credit in Scotland, and across the UK.
“There has been a disappointing lack of progress on Pension Credit take-up. We estimate that up to 70,000 older households could be missing out on Pension Credit between April 2022 and March 2023 worth a combined £140 million.
“Independent Age is urging the UK Government to maintain the Winter Fuel Payment in its current form until significant action can be taken to substantially increase Pension Credit take-up.
Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.
“It is too early to say what the impact of the recent increase in claims for Pension Credit will have on overall take-up rates. However, there is no room for complacency when an estimated 70,000 older households in Scotland are missing out on this much needed money and 150,000 live in poverty. In a socially just and compassionate society, we can and should do more.”
UK Government urged to reverse ‘damaging’ decision
The UK Government’s decision to introduce means testing for the Winter Fuel Payment must be reversed, according to MSPs.
Following a debate as part of Challenge Poverty Week, the Scottish Parliament voted in favour of a motion that the UK Government reverse its decision to restrict entitlement to the benefit. Labour MPs Richard Leonard and Alex Rowley supported the motion.
Fourteen Scottish Labour MSPs, including Edinburgh MSPs Sarah Boyack, Foysol Choudhury and Daniel Johnson, voted with their leader Anas Sarwar against the motion.
First Minister John Swinney said that as a result of this damaging decision, Scottish Government analysis indicates roughly 900,000 Scottish pensioners will no longer be entitled to support with heating costs this winter.
Commenting after the debate, the First Minister said: “More austerity is not the solution to the restrictive fiscal environment in which the UK Government, and governments across the globe, find themselves.
“It is a mistake to think that action to tackle poverty for our most vulnerable citizens are costs to be mitigated. These measures are investments in our people, our communities and our nation’s future. I have urged the UK Government to deliver an Autumn Budget that recognises this reality.
“Scotland’s Parliament has spoken, and I repeat my call for the UK Government to reverse its damaging decision to restrict entitlement to Winter Fuel Payments for pensioners.
“The Scottish Government will continue to support households with their energy bills and tackle fuel poverty. However the UK Government must ensure their budget in October provides the necessary support to those who need it most.”
CANTERBURY MP Rosie Duffield has resigned from the Labour Party, criticising Labour leader Sir Keir Starmer – now labelled Free Gear Keir – for accepting thousands of pounds worth of personal items while at the same time removing Winter Fuel Payments from thousands of struggling pensioners.
With the days feeling shorter, our thoughts are turning to the winter ahead and people up and down the country will be thinking about switching their heating on soon. But now, many older people, including millions living on a low income, will head into the colder months justifiably anxious about having their Winter Fuel Payment taken away from them as they do not receive Pension Credit.
The latest figures show that only 63% of eligible people are receiving Pension Credit, meaning up to 1.2 million older people could be missing out on an important entitlement, and so could have their Winter Fuel Payment taken away despite living on an extremely low income. In Edinburgh a massive £12.5 million in Pension Credit is going unclaimed.
Our helpline is regularly receiving calls from older people that are frightened about losing the money, and we are concerned that many will feel forced to keep their heating off. Being cold can be damaging to your physical and mental health, but the people we speak to think this is their only option as they simply do not have enough money to cover even higher energy bills.
If you are 66 and over and are concerned about losing the Winter Fuel Payment, we urge you to check your Pension Credit eligibility as the one-off payment is now tied to this entitlement.
Your claim for Pension Credit can be backdated, and if you successfully apply before the 21st December you will qualify for the Winter Fuel Payment as long as you lived in the UK during the qualifying week which is between 16th and 22nd September 2024, and you can show you were entitled to Pension Credit during that time.
You can check your eligibility through the UK Government’s Pension Credit Calculator and apply direct by calling this number 0800 99 1234. Or you can come to a charity like us at Independent Age by calling our free and confidential helpline on 0800 319 6789 and we can help work out what you might be eligible for and help you apply if needed.
Pension Credit can be transformative, it tops up income by on average, almost £4,000 a year. It also acts as a gateway to other benefits such as free TV licences for over 75s, free NHS prescriptions, council tax reduction, Housing Benefit, free eye tests and much more.
Call for action to tackle root causes of fuel poverty
Social Justice Secretary Shirley-Anne Somerville has written to Secretary of State for Work and Pensions Liz Kendall to urge the UK Government to reverse the cut to Winter Fuel Payment.
Call for action to tackle root causes of fuel poverty.
Social Justice Secretary Shirley-Anne Somerville has written to Secretary of State for Work and Pensions Liz Kendall to urge the UK Government to reverse the cut to Winter Fuel Payment.
Ms Somerville called on the UK Government to take action to address root causes of fuel poverty and volatile energy prices.
The full text of the Social Justice Secretary’s letter:
To: Secretary of State for Work and Pensions Liz Kendall
From: Cabinet Secretary for Social Justice Shirley-Anne Somerville
20 September 2024
Dear Liz,
I am writing to you to express further concerns, following the publication of the UK Government’s equality analysis on the impact of the introduction of a means-tested Winter Fuel Payments, which shows that across all assessed characteristics those affected by this change in policy will greatly outnumber those unaffected.
The Scottish Government continues to support vulnerable households from fuel poverty through a range of actions within our limited devolved powers. This year alone, we are spending £134 million on activities to mitigate UK Government policies through schemes such as Discretionary Housing Payments and the Scottish Welfare Fund, which provide vital support to households struggling to meet their housing and energy costs.
However, we cannot continue to mitigate UK austerity policy decisions. What is really needed is reform of the UK energy markets to address the root causes of fuel poverty in Scotland, such as high fuel prices. In these circumstances I would urge you to now reverse the Winter Fuel Payment decision and reinstate the payment for all pensioners.
This decision was of course taken without consultation or discussion with the Scottish Government and it has had devastating consequences for our planned launch of Pension Age Winter Heating Payment, reducing the Block-Grant Adjustment for our devolved payment by over 80%.
Having carefully considered the options, given the significant impact of this decision and the wider cuts being imposed by the Chancellor of the Exchequer on our budgets, we have had no choice but to mirror this approach in Pension Age Winter Heating Payment, our replacement for Winter Fuel Payment, which is to be delivered in Scotland this Winter by the Department for Work and Pensions on behalf of the Scottish Government.
A copy of this letter goes to the First Minister, the Deputy First Minister, the Cabinet Secretary for Finance and Local Government, the Chancellor of the Exchequer and the Secretary of State for Scotland.
A Freedom of Information request made by financial journalist, broadcaster, and speaker PAUL LEWIS has revealed the likely impact of cuts to the Winter Fuel Payment.
Mr Lewis says the DWP response (below) that shows the Labour government knew:
* 1.6m disabled pensioners would lose winter fuel payment
* 780,000 of the poorest pensioners who were entitled still would not get it – so ‘protecting the poorest’ was a lie.
In response to the House of Commons voting in favour of cutting the Winter Fuel Payment, Independent Age Chief Executive Joanna Elson, CBE said: “People in later life living in financial hardship will be rightly concerned that, despite mounting public pressure about the impact on older people on the lowest incomes, the UK Government will continue with its plans to means test the Winter Fuel Payment from this year. It’s clear that making this decision now means many people in later life struggling in poverty will be forced to make dangerous cutbacks.
“The Chancellor still has time to reassess. Even with today’s vote, the UK Government can show it is listening to the concerns of older people in poverty, and delay this policy change until more older people start receiving Pension Credit.
“Boosting take-up is complex and will take time, the latest take-up figures show that up to 1.2 million older people could be missing out on this financial entitlement. They will already be living on a low income as they are eligible for Pension Credit, but now they will have even less money to live on this winter.
“We are also concerned about the large group of older people that just miss out on Pension Credit. Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.
“In the short term we hope the UK Government listens to the evidence being shared, and doesn’t means-test the Winter Fuel Payment now.
“Long-term there must be financial security for all of us as we age.
“We urge the UK Government to lead a review where all major parties come together and agree on what an adequate income in older age is, then ensure that everybody receives it so that no one lives in poverty in later life.”
Caroline Abrahams CBE, Charity Director at Age UK said: “We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today.
“As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.
“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%.
“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim.
“It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.
“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.
“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do.
“We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support.
“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw.
“As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”
ALL Scottish Labour MPs voted with the government, butRebecca Long Bailey was one of more than fifty Labour MPs who refused to vote in favour of the cut. She explained why:
Former Labour Party leader and now independent MP Jeremy Corbyn also voted against the withdrwal of the payment. He said: “I voted against cuts to winter fuel payments. Politics is about choices, and the government has chosen to push pensioners into poverty.
What’s next for means testing? The NHS?
“I will always defend the principle of universalism. That is how we build a fairer society for all.”
A major change to this year’s Winter Fuel Payment means that to get the allowance that’s worth up to £300, you must also receive Pension Credit.If you don’t currently get Pension Credit, but think you could be eligible, it’s vital to check now and apply, otherwise you could miss out.
The allowance is now linked to certain means-tested benefits including Pension Credit. Pension Credit helps those over State Pension age who are living on a low income. It works by topping up income to a minimum level and can be worth more than £3,900 a year.
To keep getting your Winter Fuel Payment you must be eligible for Pension Credit or one of the other following benefits during the ‘qualifying week’ of 16 to 22 September 2024:
Universal Credit
income-related Employment and Support Allowance (ESA)
income-based Jobseeker’s Allowance (JSA)
Income Support
Our Benefits calculator will show you if you’re entitled to any of these benefits
In Scotland the Winter Fuel Payment will be replaced by the Pension Age Winter Heating Payment, worth up to £300.
This will also be linked to Pension Credit and certain means-tested benefits.
It’s the Pension Credit Week of Action and Work and Pensions Secretary Liz Kendall recommends checking if you, a loved one or a friend could be eligible for Pension Credit.
For someone aged 66 or over it could entitle them to the Winter Fuel Payment and other benefits: https://ow.ly/NRPh50Tcu6m
The Department for Work and Pensions (DWP) to launch Pension Credit Week of Action to boost take-up of vital benefit
Joining forces with charities, broadcasters and a range of partners, the campaign will encourage pensioners to check their eligibility and apply
Up to 880,000 pensioners could be missing out on this cash boost worth on average up to £3,900 per year
Hundreds of thousands of pensioners are being urged to apply for a benefit that could be worth on average £3,900 per year as the Department for Work and Pensions (DWP) is launching a campaign to increase Pension Credit take-up on Monday 2 September.
With as many as 880,000 pensioners missing out, the Pension Credit Week of Action aims to spread awareness and increase claims for Pension Credit, which from this year will also automatically passport eligible pensioners to receive the Winter Fuel Payment.
Joining forces with charities, broadcasters, Local Authorities, and a range of partners, the campaign will tackle myths that may prevent people applying, for instance having a small private pension, savings or owning their own home.
Families, friends and neighbours are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply. 21 December is the last possible date to make a successful backdated claim in order to receive the Winter Fuel Payment.
While around 1.4 million pensioners are already receiving Pension Credit, up to an estimated 880,000 households are eligible for the support but are not claiming it.
Chancellor, Rachel Reeves, said: “The £22 billion blackhole inherited from the previous governments means we are having to take tough decisions now to fix the foundations of our economy – including making the Winter Fuel Payments available to those most at need.
“1.3 million pensioners are already going to get help with fuel bills this year because they’re claiming pension credit – but thousands more are eligible. So, if you know someone who could get pension credit and help with their fuel bills, now is the time to help them apply for pension credit.”
Work and Pensions Secretary, Liz Kendall said: “Thousands of pensioners are missing out on Pension Credit worth on average £3,900 per year. That needs to change.
“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.
“Friends, families and neighbours can also encourage their loved ones to apply, so that they are not missing out on this vital benefit.”
Energy Secretary Ed Miliband said: “The legacy of failure on energy policy we have inherited means energy prices are set to rise in autumn. We must ensure that pensioners in the greatest need get access to help with rising bills.
“We will do everything in our power to increase take up of Pension Credit to the 880,000 households who are yet to claim – opening the door to other vital support such as the Winter Fuel Payment.
“The government will also continue our mission to deliver clean power by 2030, helping to finally give families the energy security they deserve and our country the energy independence we need.”
Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible for this support which is worth £3,900 a year on average, using DWP’s online calculator.
People with a severe disability, carers and those who are responsible for a child or young person who lives with them could get more. Pension Credit can also include extra amounts for certain housing costs, such as ground rent or service charges.
This work is part of a wider plan to ensure economic stability for pensioners by protecting the Triple Lock and supporting households with their energy bills through the £150 Warm Home Discount and the Warm Homes Plan – upgrading millions of homes this Parliament.
Over the next five years, more than 12 million pensioners could see their State Pension increase by over a thousand pounds as a result of the commitment to the Triple Lock.
Over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm)
By printing out and filling in a paper application form
For more information visit the Pension Credit GOV.UK page.
The Winter Fuel Payment is worth £300 for households with someone aged 80 or over. Households with someone aged 66-79 will receive £200.
We will work with Local Authorities to bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible.
People who have reached State Pension age before September 23, 2024 and are in receipt of Pension Credit, Income Support, Income based JSA, Income related ESA, Universal Credit, Child Tax Credit or Working Tax Credit, will be entitled to a Winter Fuel Payment – subject to eligibility conditions.
The regulations to means-test the Winter Fuel Payment will be laid on 22 August 2024. The qualifying week in 2024 for Winter Fuel Payments will be from 16 to 22 September.
Pensioners need to be entitled to Pension Credit for at least one day in week September 16 to 22 to be eligible for a Winter Fuel Payment for this winter.
21 December is the last date for backdating a claim for Pension Credit to 22 September, assuming the claimant met the Pension Credit entitlement conditions throughout the previous three months.
Anyone who is entitled to Pension Credit for at least one day of the Winter Fuel Payment qualifying week will have automatic entitlement to Winter Fuel Payment. There are some exceptions which are detailed on GOV.UK: https://www.gov.uk/winter-fuel-payment/eligibility
People do not have to do anything extra to backdate their claim. If they make their application online, they will automatically be asked if they would like to backdate it. If they make their application over the phone the advisor will talk them through this.
Around 1.3 million households in England and Wales will continue to receive Winter Fuel Payments due to some other pensioner households being eligible and expected extra Pension Credit take up due to this reform.
Pension Credit recipients by region (as of February 2024):