Last week, the long-awaited announcement on the winter fuel allowance finally happened. After months of speculation, the government hiked the eligibility threshold to £35,000. This means millions more pensioners will get a payment of up to £300 in time for the colder months.
It’s an announcement that will be greeted with a sigh of relief by pensioners up and down the country. Restricting the payment to those on pension credit and other means-tested benefits was hugely unpopular and meant many low-income pensioners faced a nasty threshold, where those just a few pounds off from qualifying received nothing. These pensioners faced a difficult time as they tried to make their already strained budgets stretch even further over the winter months.
Details of when the winter fuel allowance will be paid will be available soon, but pensioners will receive the payment automatically — you don’t need to claim it. Those with an income of more than £35,000 per year will need to repay it either through PAYE or self-assessment. It’s not a flawless system by any means, but it does mean millions more pensioners will get this much needed payment.
There were also hopes that the move to restrict the winter fuel allowance would prompt more people to check if they are eligible for pension credit. This is a benefit targeted towards boosting the incomes of the poorest pensioners, which remains chronically under-claimed, despite government attempts to boost awareness. The data shows that the move did prompt more people to check their eligibility, but the fact remains that hundreds of thousands of people who could be claiming it still aren’t.
The issue of under-claimed pension credit remains unresolved. This benefit not only tops up your income but acts as a valuable bridge to further support. This can include help with council tax and NHS costs. There’s also the free TV licence for the over 75s. More work needs to be done to understand why more people don’t come forward with a claim.
If you or a loved one is over state pension age, then pension credit will top up your weekly income to £227.10 if single or up to £346.60 if you have a partner. If your income is higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs, so it’s well worth putting in a claim to see if you qualify for this important benefit.
