The Department for Work and Pensions (DWP) has provided further clarification on why it cannot extend the eligibility criteria for the Winter Fuel Payment, following a policy change last summer.
This annual heating allowance, which offers up to £300 to help older individuals with winter energy costs, is no longer available to approximately 9.2 million pensioners who do not receive a qualifying means-tested benefit such as Pension Credit.
According to Manchester Evening News, the government has defended its approach, citing financial constraints and the need to target support toward the most vulnerable.
Government Response on Eligibility Changes
In response to a parliamentary question from Conservative MP Wendy Morton, Sir Stephen Timms, Minister for Social Security and Disabilities, explained that expanding eligibility for the Winter Fuel Payment would effectively require raising the prescribed rates of Pension Credit.
Sir Stephen Timms justified the policy decision, stating :
“The Government has had to make hard choices to bring the public finances back under control. Linking Winter Fuel Payment eligibility to Pension Credit and other means-tested benefits ensures that the least well-off pensioners still receive the help they need.”
He further explained:
“Increasing the eligibility threshold for the Winter Fuel Payment would effectively mean raising the prescribed rates of Pension Credit. Raising the level of the single person’s standard minimum guarantee in Pension Credit so that it matches or exceeds the full rate of the new State Pension to allow entitlement to the Winter Fuel Payment would draw more pensioners into means testing, thus undermining the rationale for the new State Pension – the full rate of which is set at a level higher than the Pension Credit standard minimum guarantee for a single person.”
Pension Credit and Its Impact
The DWP estimates that around 760,000 pensioners are eligible for Pension Credit but are not claiming it. On average, Pension Credit provides over £4,200 per year, offering financial support that extends beyond basic income assistance.
Sir Stephen Timms highlighted the importance of ensuring that eligible pensioners claim their entitlement, saying :
“The primary purpose of Pension Credit is to provide poorer pensioners with a guaranteed income level, and we know there are eligible pensioners who aren’t claiming Pension Credit. This is why, since September, we have been running the biggest ever Pension Credit take-up campaign. We want to ensure as many people as possible have access to Pension Credit and the other support it leads to.”
Addressing Misconceptions About Means-Tested Benefits
Many pensioners mistakenly believe that owning property or having savings disqualifies them from means-tested benefits. However, DWP confirms that even a small Pension Credit award—as little as £1 per week—can unlock additional financial support, including assistance with housing costs, heating bills, and Council Tax.
The Winter Fuel Payment remains an important source of support for pensioners, but the current system ensures that those most in need receive it automatically.
Understanding Pension Credit Eligibility
Pension Credit consists of two components : Guarantee Credit and Savings Credit. Guarantee Credit ensures that single pensioners receive at least £218.15 per week, while couples receive £332.95 per week, with potential increases for individuals with disabilities, carers, or specific housing costs.
Savings Credit provides an additional amount depending on a pensioner’s income and savings, including assumed income from savings over £10,000.
How to Check and Apply for Pension Credit
Pensioners, or their family members, can check their eligibility using the Pension Credit calculator available on GOV.UK. Alternatively, they can call the Pension Credit helpline on 0800 99 1234, which is open Monday to Friday from 8 am to 6 pm.
