Thousands of pensioners who lost access to the Winter Fuel Payment due to a previous overhaul may now be eligible to receive it again.
Winter Fuel Payment Eligibility May Impact Pension Credit Uptake
According to analysts, if councils become in charge of the task of tracking down those who qualify for means-tested benefits, more people would be engaged and encouraged to apply for Pension Credit, a benefit that entitles individuals for the payment, reports the Birmingham Live.
Policy in Practice supports controlling the Winter Fuel Payment to ensure it does not go to wealthier retirees, yet more needs to be done to increase the number of people who qualify for it.
According to Chancellor Rachel Reeves, the scheme will now only be offered to those in pension-age households who get any of these five means-tested benefits: Pension Credit, Universal Credit, Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance.
Simply qualifying for a State Pension or any other benefit is not sufficient to ensure your eligibility.
The main concern, however, is the poor uptake of Pension Credit, which is a top-up payment for those receiving a low or no State Pension. According to the social policy data analytics organisation, around one million families are set to miss out as a result of the adjustments proposed to the Winter Fuel Payment.
According to the data, approximately 850,000 pensioners are eligible for but do not claim Pension Credit, while another projected 130,000 older people would miss out because their income is only £500 higher than the Pension Credit eligibility criteria. The group says they would be better off with a lesser wage and collecting Pension Credit and the Winter Fuel Payment.
Pension Credit and Other Benefits Could Add Up to £9,665 for Eligible Pensioners
As indicated by Policy in Practice, Pension Credit is valued at £2,677 per year on average and can be used to pay for other household expenses and obligations. According to the report, Housing Benefit is worth an around £4,338 and Council Tax Support is worth approximately £1,670.
The benefit also offers a free TV licence, which would otherwise cost £170. There are other possible price reductions on broadband (£200) and water (£160), as well as eligibility for the Warm Home Discount (£150) and Winter Fuel Payment (£300). The group reckons that all of this adds out to an average of £9,665.
Deven Ghelani, founder of Policy in Practice stated: “Taking the Winter Fuel Payment from better-off pensioners is one of the few reasonable ways to save money in social security, particularly as they benefit from the triple lock. However, there really is no excuse for the shockingly low levels of Pension Credit take-up, as many older people continue to struggle with the cost of living.
“The Secretary of State should prioritise simplicity in the benefit system and promote proactive support for people. The DWP could start by sharing data with local authorities and widening legislation to allow for automated take-up campaigns for benefits such as Pension Credit. If Universal Credit data were shared more widely, we could boost incomes while lowering administration costs.”
According to the group, campaigns led by local governments can help to close the participation gap. It stated that a recent London-wide program resulted in over 2,300 households claiming Pension Credit while they were previously unaware they were eligible.
Locally-led initiatives were shown to be more than twice as successful as national campaigns, the report stated. The project is increasing, with over 60 councils participating this year to raise consciousness regarding Attendance Allowance, free school meals, Healthy Start and social tariffs.