Time is running out for pensioners to submit their backdated pension credit claims and secure this year’s winter heating payment.
Pensioners Urged to Apply for Pension Credit and Winter Fuel Payment Before Deadline
By Chourouk Derkaoui
Published on 20 November 2024 18:15
Pensioners are reminded to submit their pension credit claim by Thursday 21 November in order to qualify for the Winter Fuel Payment this year; Quilter advises those who haven't done yet to complete their claim by 21 December, for eligibility.
Changes to Winter Fuel Payments
The Chancellor announced in July that starting this year only individuals, with incomes who receive benefits, like pension credits, would qualify for the Winter Fuel Payments.
DWP has only spent £253,954.92 on advertising pension credits since the Chancellor's announcement, in a bid to boost take-up, according to recent Department for Work and Pensions (DWP) statistics obtained by Quilter under Freedom of Information.
Financial Implications of Missed Claims
In the analysis, by Unite revealed that the government could potentially save £14 billion annually by reducing the winter fuel allowance expenses. The scenario would change considerably if all eligible pensioners who have not yet claimed their Pension Credit were to do, in that case the Government's expenditure would rise to £22 billion, per year.
This would mean that many of the UK's poorest pensioners would lose their Winter Fuel Allowance if they did not apply in time, as well as losing vital Pension Credit payments.
Ensure Pensioners Apply for Pension Credit and Winter Fuel Allowance Before It’s Too Late
Individuals who have family members or close friends over state pension age who may be eligible, or who think they may be eligible, should ensure that they meet the eligibility requirements and submit their application as soon as possible.
In addition to being reimbursed their winter heating allowance of £200 or £300, depending on their age, those who qualify will also receive a pension credit to supplement their income.
| Pension Credit Component | Description | Current Rates |
|---|---|---|
| Guarantee Credit | Tops up weekly income to the minimum guaranteed level. | £218.15 (single) / £332.95 (partner) |
| Savings Credit | Small top-up for those who reached State Pension age before 6 April 2016, with modest income or savings. | N/A |
| Pension Credit Application Data (2019/20 to July 2024) | Figures |
|---|---|
| Total Claims Submitted | 848,973 |
| Successful Claims | 572,565 (67%) |
Pension Credit Eligibility and Benefits
Eligibility Criteria
- Age: Must have reached State Pension age (currently 66 or older).
- Residency: Must live in the UK.
- Income:
- Below £218.15 per week (single).
- Below £332.95 per week (couple).
- Higher income thresholds may apply for those with disabilities or caring responsibilities.
- Savings and Investments:
- Savings over £10,000: Each £500 above this amount counts as £1 additional weekly income.
- Example: £11,000 in savings adds £2 to your weekly income for eligibility calculations.
Additional Benefits for Pension Credit Recipients
- Free TV Licence: For those aged 75 or older (covers everyone in the household).
- Housing Benefit: Assistance with rent.
- Council Tax Discount: Reduction on council tax bills.
- Other Benefits: Financial support for heating and other expenses.
Expert Commentary
Jon Greer, Head of Retirement Policy at Quilter, emphasizes the urgency:
“With just a month left to make a backdated claim for pension credit and secure the winter fuel payment, it’s vital for pensioners on low incomes to check their eligibility.
While it’s understandable that the government aims to preserve the savings from cutting the winter fuel payment, spending just £250,000 on advertising risks leaving many vulnerable pensioners in the dark.
Pension credit not only guarantees a minimum weekly income of £218.15 for singles and £332.95 for couples but also provides access to valuable additional benefits that can significantly reduce financial pressures.”