Huge change to winter fuel payments as thousands will get £300 direct into bank accounts this winter – are you affected?
THOUSANDS of households will benefit from a huge change to winter fuel payments for the first time this year.
The Department for Work and Pensions (DWP) revised the criteria for applying for the payment, worth up to £300.
It comes after cuts made by chancellor Rachel Reeves mean that 10million pensioners will no longer be eligible for benefit.
The £300 government handout was previously available to everyone aged over 66 to help with high energy costs.
However, the cash is now only given to retirees on pension credit and several other means-tested benefits.
Most households automatically receive the winter fuel payment, including those on pension credit.
However, under the previous rules, those with a joint claim to Universal Credit where one member was over the state pension age had to apply to receive the funds.
This required these households to wait until a specific date in September before they could apply by post or via phone.
Households living abroad are also expected to apply for winter fuel payments.
But, the DWP has now updated its guidance and all households claiming the following benefits do not need to apply for this year’s winter fuel payment, unless they live abroad:
- Pension credit
- Universal Credit
- Income support
- Income-based jobseeker’s allowance (JSA)
- Income-related employment support allowance (ESA)
- Child tax credit
- Working tax credit
Only those living abroad and meeting certain conditions must apply for the cash this winter.
If you do not live in the UK, you’re only eligible for the winter fuel payment if:
- You moved to an eligible country before January 1, 2021
- You were born before September 23, 1958
- You have a genuine and sufficient link to the UK – this can include having lived or worked in the UK and having family in the UK
You only need to claim winter fuel payment if you’ve not got it since you moved abroad.
Otherwise, you’ll get the payment automatically.
To claim by post, you’ll need to fill in the winter fuel payment claim form and post it to the Winter Fuel Payment Centre.
This will be available at www.gov.uk/winter-fuel-payment/how-to-claim from September 30. You can also find the address to post it to here.
Households will also be able to claim by phone, and the DWP will release the helpline number online on October 28.
The deadline to claim for this winter is March 31, 2025.
SUN MONEY VERDICT
Analysis by James Flanders, chief consumer reporter.
THE Department for Work and Pensions has revised the criteria for applying for the winter fuel payment, which is worth up to £300.
While this update appears to be a positive development, it comes against a backdrop of cuts that will see 10million pensioners lose out.
Previously, the £300 government handout was a lifeline available to everyone aged 66 and above, offering much-needed relief from high energy costs.
However, Chancellor Rachel Reeves’ recent cuts have narrowed the eligibility to retirees on pension credit and other means-tested benefits.
The new application criteria aims to simplify the application process for most households, who will now receive the winter fuel payment automatically.
This includes those on Universal Credit, a welcome change that should alleviate some of the administrative burden.
Under the previous rules, households with a joint claim to Universal Credit, where one member was over the state pension age, had to endure a cumbersome process.
They were required to wait until a specific date in September to apply by post or phone.
These households will now receive their payments automatically and will not have to stress over filling out a long-winded application form.
HOW MUCH YOU’LL GET
Payments last year were worth between £300 and £600, depending on your specific circumstances.
This is because the amount included a “Pensioner Cost of Living Payment” – between £150 and £300.
However, this year, it will be worth £200 for eligible households or £300 for eligible households with someone aged over 80.
That means you could receive up to £300 in free cash depending on your circumstances.
Most payments are made automatically in November or December.
You’ll get a letter telling you:
- How much you’ll get
- Which bank account it will be paid into
If you do not get a letter or the money has not been paid into your account by January 29, 2025, you must contact the Winter Fuel Payment Centre on 0800 731 0160.
AVOID MISSING OUT
Over 800,000 households are eligible for pension credit but aren’t claiming the benefit.
Those people will now also miss out on this year’s winter fuel payment unless they start claiming.
Pension credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
This is known as the “guarantee credit”.
If your income is lower than this, you’re very likely to be eligible for the benefit.
However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
- Attendance allowance
- The middle or highest rate from the care component of disability living allowance (DLA)
- The daily living component of personal independence payment (PIP)
- Armed forces independence payment
- The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
You could get the “savings credit” part of pension credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, in a personal or workplace pension
This part of pension credit is worth £17.01 for single people or £19.04 for couples.
It’s wise to put in an application as soon as possible, as the DWP can take up to two months to process new claims.
However, new claims for pension credit can be backdated by three months.
This means that the absolute deadline to claim the benefit and qualify for this year’s winter fuel payment is December 21.
If you fail to apply for the benefit before this date, you won’t qualify for this year’s £300 winter fuel payment.
How do I apply for pension credit?
YOU can start your application up to four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)
You can also check your eligibility online by visiting www.gov.uk/pension-credit first.
If you claim after you reach pension age, you can backdate your claim for up to three months.