The announcement follows a Freedom of Information request that asked for details about the Government’s impact assessment on proposals affecting who receives the winter payment. The information provides further detail on how different groups of pensioners are affected by the policy changes.
Payment Rates and Eligibility Details Confirmed by the DWP
According to the DWP, the Winter Fuel Payment is normally £200 for people aged 66 to 79. Those aged 80 or over receive £300, with payments made in November or December each year. The department stated that shared payments are made for people living in the same household. It also confirmed that the payment is not means-tested and is not taxed.
The DWP provided the information in response to a Freedom of Information request received on 20 August. The request asked for the Government’s internal impact assessment relating to proposals to limit the annual Winter Fuel Payment to people over State Pension age who receive Pension Credit or other means-tested support.
The figures supplied by the department also show differences between age groups among people receiving the payment. In 2022/23, 28% of recipients in the country were aged 80 or above.
The DWP said that state pensioners receiving income-related benefits other than Pension Credit represent less than 5% of the total post-policy Winter Fuel Payment caseload, with 45,000 people in this group. These recipients are mostly expected to be mixed-age couples on Universal Credit, where one person is above State Pension age and the other is below it.
Impact of the Policy Changes on Older Pensioners
According to the information provided through the Freedom of Information response, 83% of people aged 80 and above who currently receive Winter Fuel Payment will lose access to it under the changes, compared with 90% of those aged 66 to 79.
The figures show that while a smaller proportion of people aged 80 and over are affected compared with younger pensioners within the State Pension age group, those affected in the older age category may face a larger financial impact because their usual payment rate is higher.
The DWP also noted differences in Pension Credit take-up between age groups. In 2021/22, the take-up rate was higher among people aged 75 or above than among those aged under 75. 4 in 10 people currently receiving Pension Credit are aged 80 or above, according to the DWP’s response. This reflects the age profile of some pensioners receiving means-tested support and forms part of the department’s assessment of the affected groups.
The confirmed details outline how the Winter Fuel Payment is distributed across age groups and how changes to eligibility affect different categories of pensioners. The information released by the DWP does not alter the payment rates themselves but sets out the groups included in the current system and those affected by the policy changes.
