The Chancellor has decided to end the previous universal winter fuel payment for pensioners not claiming benefits.
Rachel Reeves said that pensioners will receive a payment from this winter — only if they receive pension credit.
The Treasury said the winter fuel changes would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million. This means just under 10 million would miss out.
“The scale of the situation we are dealing with means incredibly tough choices. I repeat, today, the commitment that we made in our manifesto to protect the triple lock,” Ms Reeves told the House of Commons on Monday (July 29).
“But, today, I am making the difficult decision that those not in receipt of pension credit or certain other means-tested benefits will no longer receive the winter fuel payment.
“From this year onwards, the Government will continue to provide winter fuel payments worth £200 for households receiving pension credit, or £300 for households in receipt of pension credit with someone over the age of 80.
“Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make, but these are the necessary and urgent decisions that I must make.”
So what is pension credit?
Here’s what you need to know.
What is pension credit?
Pension credit is a tax-free benefit for those who have reached retirement age and live in the UK.
It has two parts — Guarantee Pension Credit and Savings Pension Credit. One or both parts are given depending on a person’s circumstances.
Pension credit tops up:
- your weekly income to £218.15 if you’re single.
- your joint weekly income to £332.95 if you have a partner.
You may get extra amounts if you have other responsibilities and costs.
The top-up and extra amounts are known as “Guarantee Credit”.
Are you eligible for pension credit?
You must live in England, Scotland, or Wales to qualify — although the small print does allow nationals from some other European nations. More on that here.
To be eligible, you must also have reached state pension age, which varies and can be calculated on the Government website here.
“When you apply for pension credit your income is calculated. If you have a partner, your income is calculated together,” the Department for Work and Pensions (DWP) says on its website.
“If your income is 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.”
More details about income and availability can be found here.
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