The government’s decision – which limited the payment to older people receiving pension credit or other means-tested benefits – could plunge “millions” into poverty, campaigners have warned.
Shockingly, this grim tally will include hundreds of thousands who are still entitled to the payment. According to government research, a staggering 880,000 pensioners are eligible for pension credit but aren’t claiming – depriving themselves not only of the winter fuel payment but of a whole suite of other benefits, including free NHS prescriptions, council tax support, housing benefit and free eye tests.
Dr Carole Easton, chief executive at the Centre for Ageing Better, described this trend as “hugely concerning”.
“The underclaiming of pension credit shows that when benefits are neither universal nor automated, it is often those who need it most who are least likely to claim,” she said. “[They are] therefore the most likely to miss out.”
Pension credit is worth around £75 per week on average – a mammoth £3,900 per year.
The sum can be “life-changing”, said Independent Age chief executive Joanna Elson – yet pension credit has a “stubbornly low take-up” of roughly at 64%.
“If you are 65 and over and are worried about your financial situation, we urge you to check your pension credit eligibility,” she said.
“Now it’s linked to the winter fuel payment, it’s even more costly to miss out on this entitlement. On average, pension credit can top up your income by almost £4,000 a year.”
How to check if you are eligible for pension credit
This week (16-22 September) is the ‘qualifying week’ for the winter fuel payment.
Pensioners need to be entitled to pension credit for at least one day in week September 16 to 22 to be eligible for a winter fuel payment for this winter.
But don’t panic about submitting your application this week: you can backdate your pension credit claim up to three months. This makes 21 December the last day you could apply for backdated pension credit in order to be eligible for the 2024-25 winter fuel allowance.
“People do not have to do anything extra to backdate their claim,” explain Citizens Advice. “If they make their application online, they will automatically be asked if they would like to backdate it. If they make their application over the phone the advisor will talk them through this.”
So, how do you know if you’re eligible?
If you live in the UK and are above state pension age (currently 66), you will likely be eligible for pension credit IF:
- You’re single with total weekly income under £218
- OR if you’re a couple, both of pension age, with weekly income under £332.95
The exact qualifying criteria – and how much you will be entitled to – is slightly more complex, because savings, investments and other benefits factor in. People with a severe disability, carers and those who are responsible for a child or young person who lives with them could get more.
The best way to check your eligibility is to use the government’s online pension credit calculator, or to call the pension credit helpline.
Once you have checked your eligibility using the above tools, you can apply for the credit via this website.
“If you know someone who could get pension credit and help with their fuel bills, now is the time to help them apply for pension credit,” chancellor Rachel Reeves said, launching a government campaign to boost uptake.
Easton described the campaign as a positive sign – but feared that huge numbers could still fall through the gaps.
“It has become a desperate scramble for many pensioners to now claim Pension Credit in time to receive winter fuel payments,” she said.
“It should not have been this way. The government should have delivered this significant change at a more gradual pace and carried it out alongside clear targets to improve the uptake of Pension Credit, including exploring making it an automatic payment.”
She adds that the campaign won’t be much use to pensioners like Pauline, who aren’t eligible due to an arbitrary “line in the sand” income threshold.
“There will be many low-income pensioners who won’t be eligible for support this winter who will struggle and will have to take difficult choices between heating and eating which will have negative consequences for their health,” she added.
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