Starting Monday, 16 September, the Department for Work and Pensions (DWP) is introducing new rules that will limit Winter Fuel Payments.
DWP Faces Criticism Over Winter Fuel Payments and Pension Credit Eligibility
In a few days, only individuals over State Pension age who are receiving income-related benefits, such as Pension Credit, Tax Credits, and other means-tested support will be eligible for the Winter Fuel Payments.
Consequently, around 10 million pensioners, including 850,000 in Scotland, will not get the annual heating assistance. Labour MP Rachel Maskell has criticised the move, urging the DWP to explore other options, such as basing payments on Council Tax bands or linking them to tax payments.
Pensions Minister Emma Renolds issued a written response on Thursday stating that Winter Fuel Payments based on Council Tax banding “would not be possible”, she also added that “Council Tax banding is not always an accurate reflection of someone’s income”.
Ms Reynolds responded to the plan to tax winter fuel payments by saying:“Matters of taxation are for His Majesty’s Treasury. The tax treatment of social security benefits is based on the type of payment and why it is provided.
“In general, benefits that are designed to replace income are taxable, including the State Pension. Benefits that meet specific costs, such as Winter Fuel Payments, are not taxable.”
In a separate written question, Ms Maskell called on the Department for Work and Pensions (DWP) to “contact every pensioner on Housing Benefit to encourage them to take up Pension Credit”.
The Pensions Minister replied: “The Deputy Prime Minister and the Secretary of State for Work and Pensions wrote to all local authorities on 20th August.
“We are asking that local authorities support our national Pension Credit campaign and help us reach those eligible pensioners who have not claimed Pension Credit, so they continue to receive an annual Winter Fuel Payment.”
She noted that, following last year's 'Invitation to Claim' pilot, the DWP will contact around 120,000 senior households who receive Housing Benefit and may be entitled for, but aren't yet claiming, Pension Credit.
She also stated that they will be encouraging households to apply for Pension Credit before the 21 December backdating deadline to ensure that eligible applicants also qualify for a Winter Fuel Payment.
DWP Launches Campaign to Boost Pension Credit Take-Up Amid Winter Fuel Payment Changes
Replying to a number of written questions from MPs worried about the Winter Fuel Payment adjustment, the Pensions Ministers emphasised that the DWP is working with "external partners, local authorities, and the devolved governments to boost the take-up of Pension Credit".
However, while addressing a written inquiry from Democratic Unionist Party MP Gregory Campbell, she was unable to specify how many seniors she would like to see sign up for a nationwide TV and radio campaign that begins on Monday.
Ms Reynolds replied: “No targets have been set, the Government wants everyone eligible for Pension Credit, but not currently claiming it, to receive the benefits they are entitled to.
“DWP launched the Pension Credit Week of Action on September 2, joining forces with national charities, broadcasters and local authorities to encourage pensioners to check their eligibility and make a claim.
“From September 16, we will be running a national marketing campaign on a range of channels. The campaign will target potential pension-age customers, as well as friends and family who can encourage and support them to apply.
“Our future campaign messaging will also focus on encouraging pensioners to apply for pension credit before December 21 2024, which is the last date for making a successful backdated claim for Pension Credit in order to receive a winter fuel payment.”