The new Labour government plans to save £1.4 billion this year by restricting winter fuel payments to only the poorest pensioners.
It has been a controversial decision, with some saying elderly people will be forced to choose between food or fuel when a 10% rise in the energy price cap comes into effect this winter.
But what are winter fuel payments, and who can get them? Here is the background on the benefit currently dominating headlines.
What are winter fuel payments?
Introduced by Labour in 1997, one-off fuel payments were made to pensioners each winter to help them cover the cost of heating their homes.
Until this year, the payments were a universal benefit for all pensioners, meaning everyone was paid automatically no matter how much their income was.
The current level is £200 for those aged between 66 and 79, and £300 for those over 80.
But the new Chancellor Rachel Reeves announced last month that the benefit will be means tested — so only the poorest will receive it.
Who is eligible for winter fuel payments under the new rules?
From this year, only pensioners already receiving other benefits such as Pension Credit or Universal Credit will be given it.
This has caused alarm for two main reasons. The first is that most people only receive Pension Credit if their annual income is under £11,336.
It is not a high amount, and even those with income above this threshold may need help heating their home enough, especially if they have additional needs that require higher energy consumption, or live an an energy-inefficient home.
With the energy price cap about to rise by 10% this year, paying bills will be a challenge for many.
Age UK claimed that up to two million pensioners who ‘badly need the money to stay warm this winter’ will not receive it.
Secondly, although roughly 1.4 million people claim Pension Credit, there are almost a million pensioners (at least 800,000) who are eligible but who do not.
This could be for many reasons, such as pride and not wanting to take hand-outs, not knowing they are eligible, or not feeling able to manage the paperwork necessary to apply.
There are therefore fears that many who badly need the winter fuel payment will not get it because they will slip through the net if linked to other benefits, whereas if it was a universal benefit they would just get it in their bank account without having to jump through any hoops.
How to apply for Winter Fuel Payment?
If you are a pensioner and think you should be eligible, the best way is to apply for Pension Credit as the fuel payment will be paid automatically to those receiving this.
You can apply online using the government’s website here or there is also the option to post a printed form.
Charities like Citizens Advice or Age UK can also give advice if you need help completing the form.
What has Martin Lewis said?
Money-saving expert Martin Lewis is one of the loudest voices calling for a rethink.
He said that while he understands the argument to means-test the benefit, the eligibility criteria should be more generous as it currently doesn’t include all those who will struggle.
Writing on X, he said: ‘The government must rethink Winter Fuel Payments or almost ALL pensioners will need to find £100s more than last winter.
‘While energy will cost less than during last winter’s crisis time, the reduction in rates only equates to a drop of roughly £100 over the six winter months for a household with typical usage.
‘Yet specific pensioner energy support has dropped by far more… Last year pensioner homes got up to £300 extra per household cost of living support – that’s gone, and its loss alone is far bigger than the saving made by slightly lower rates.
‘Piling on top of that is the government’s new decision to means-test Winter Fuel Payments, that will leave all except usually those who claim Pension Credit missing out on a further £200 – £300.
‘While there’s a strong argument for ending the universality of Winter Fuel payments, eligibility is being squeezed to too narrow a group. Those just above the thresholds will be hardest hit.
‘I’m due to meet the Chancellor in a couple of weeks, and will then be urging her to look at methods to widen eligibility – such as to homes in council tax bands A to D – an imperfect but workable proxy for lower household incomes.’
Get in touch with our news team by emailing us at webnews@metro.co.uk.
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