Winter Fuel Payments: Wrekin’s energy advisor says new eligibility rules are ‘too narrow’
MPs have voted to restrict winter fuel payments to pensioners on the lowest incomes, by limiting eligibility to only those who claim pension credit or another means-tested benefit.
Giving her reaction to the vote, Chloe Ramsay, energy advisor at The Wrekin Housing Group, said the move was too restrictive and called on the government to do more to support people who find themselves struggling.
Chloe said: “This vote will undoubtedly be a cause for concern for thousands of households across our region who rely on the payment to help them heat their homes over winter, with over 91% of previous recipients no longer eligible.
“A major worry is how the loss of the payment, worth up to £300, could impact people’s health and wellbeing, if they can’t afford to put their heating on or are forced to cut down on other necessities like food to make up the shortfall.
“While there is an argument for means-testing the payments to some degree, linking it to pension credit entitlement is too narrow.
“Our Money Matters team at Wrekin has seen first-hand the impact that rising energy costs have had on households, and it’s not just those on the breadline that are struggling. More and more often, we are seeing people come forward for support who, prior to the cost-of-living crisis, were able to comfortably cover their outgoings.
“It’s evident there is a growing group of people caught in the middle. Their income is too high to qualify for pension credit or other benefits, but in reality they don’t bring enough in, whether through wages, pension or other means, to make ends meet.
“For example, most people receiving the full rate of the new state pension, £221.20 a week, will not qualify for pension credit and will now miss out on the winter fuel payment.
“But this equates to an annual income of just £11,500 a year. For comparison, the Living Wage Foundation says the minimum amount that someone outside London needs to bring in to afford a ‘decent standard of living’ is more than double this, at £23,400.
“It needs to be a priority for the government to close the gap, by adjusting cut-off points or putting alternative help in place for people who are unable to access existing support mechanisms but find themselves struggling. I hope the autumn budget statement next month will set out plans to address this.
“In the meantime, if you’re 66 or over and haven’t yet checked your entitlement for pension credit, I urge you to do so as a priority. It is worth £3,900 on average, and unlocks other support including the winter fuel payment, but there are still over 800,000 people missing out.
“You may be eligible for pension credit if your weekly income is less than £218.15 (or £332.95 if you’re in a couple). If you earn more than this, check anyway – the limits are higher in certain circumstances, such as if you claim disability benefits or have caring responsibilities.
“But in order to be eligible for this year’s winter fuel payment, time is running out as you need to be claiming pension credit by next week (September 16 to 22) in order to qualify.
“If you’re not of pension age yourself, you could help out a family member, friend or neighbour by encouraging them to check their eligibility.
“More information and support are available from charities like Citizens Advice and Age UK, and Wrekin Housing Group customers can always contact our Money Matters team.”
11th September 2024