The rules surrounding the Winter Fuel Payment have changed this year in a move that could see pensioners lose up to £300 in energy bill support.
Last month, Chancellor Rachel Reeves confirmed the allowance would be means-tested going forward in a controversial move for the new Labour Government.
What is the Winter Fuel Payment?
This is a benefit that offers households a concession on their heating bills if they were born before September 23, 1958.
Those of state pension are able to claim £300 in financial assistance from the Winter Fuel Payment.
However, with Reeves’ latest rule change, older Britons will now need to be in receipt of means-tested benefits from the Department for Work and Pensions (DWP).
Some two millions pensioners are expected to be impacted by the allowance being reserved for benefit claimants just before winter kicks in.
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Who is now eligible for the Winter Fuel Payments?
As mentioned, access to this benefit will be dependent on whether someone is on low income and gets means-tested support from the DWP.
The primary benefit payment for those of state pension age who fit this definition is Pension Credit.
Britons can start their application for this DWP benefit up to four months before they reach the official retirement age.
Applications can be sent at any time but claims can only be backdated by three months.
Why is the Winter Fuel Payment change controversial?
Critics have taken aim at the new Labour Government for not including the means-testing of the Winter Fuel Payment in its manifesto ahead of the General Election.
Households have been saddled with soaring energy bills amid the ongoing cost of living crisis.
Costs for a typical household are sitting at £1,568, as per Ofgem’s energy price, but this remains 29 per cent above winter 2021/22 leve.s.
Furthermore, energy bills are expected to go up again on October 1 which will worsen the financial climate for pensioners.
Caroline Abrahams, the charity director of Age UK, said: “We believe that means-testing Winter Fuel Payment is the wrong policy decision because well-off older people will scarcely notice its loss, but an estimated two million others on low and modest incomes, or who have very high energy bills through no fault of their own, will also miss out when they really depend on it to be able to pay their fuel bills.
“What worries us the most is that we fear many will not be able to afford to stay adequately warm this winter as a result, potentially causing them enormous anxiety and distress, as well as undermining their physical health, especially if they are living with serious health conditions.
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The Winter Fuel Allowance is intended to help people who have reached state pension age with the cost of heating in the winter GETTY
“And to make matters worse, this isn’t the only help with heating bills that pensioners are being asked to manage without this winter, compared to last. Cost of Living payments have stopped and the Household Support Fund has closed.
“Meanwhile, energy bills for a typical household are about a third higher than they were three or four years ago, and the energy price cap is expected to be lifted in October, so bills may well rise again.
“Some commentators have suggested that means-testing the Payment is fair because the older people who need it the most will still be protected, but the evidence shows this is sadly not the case.
“This is why Age UK will be campaigning shoulder to shoulder with older people over the next few months to persuade the Government to think again.”
Source Agencies
