DWP writing to all state pensioners over group who could still get £300 winter fuel payment

Ministers are concerned those who get housing benefit think they're over pensions credit threshold when it has no effect

A minister has pledged to write to ‘all pensioners’ to ensure they know that people who claim housing benefit can still get Pensions Credit - and so the winter fuel payment. Speaking in a Commons debate on the winter fuel payment the Parliamentary Under-Secretary of State for Work and Pensions Emma Reynolds said she was concerned that people may think they earn too much to get Pensions Credit.

This acts as a ‘gateway’ benefit to others, including the £2-300 winter fuel payment. In July Chancellor Rachel Reeves announced the winter fuel allowance for pensioners would be limited to only those claiming pension credit or other means-tested benefits.

It is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million. People can only claim Pensions Credit if their income is below £11,400 a year but some benefits are not included in this total - meaning people may think they are ineligible when they are not.

An estimated 760,000 families who were entitled to receive pension credit did not claim it in the financial year ending in 2023, according to Department for Work and Pensions (DWP) figures - and it’s worth an extra £3,900 a year on average to some of the poorest people in the country.

In the debate which took place last month Ms Reynolds said: “We will write to all pensioners about housing benefit; this is a question that one of my hon. Friends asked me yesterday. He had a constituent on housing benefit who was concerned that that would be taken into account as a form of income when the Government looked at his eligibility for pension credit. I confirm that that is not the case: housing benefit is not taken into account with regard to income. Please, I urge pensioners on housing benefit, who will be receiving a letter from the Department, to apply for pension credit.

“As a Government, we are looking to merge the administration of housing benefit and pension credit to make that much simpler for people. The previous Government promised they would do that—some years ago, in fact—but were not going to until 2029. We think that that was slow decision making, and we are seeking to do it as soon as is operationally feasible. It is not a simple exercise, but it is something that we should do.”

The decision by Chancellor Rachel Reeves to cut the benefit which gave £2-300 to more than 11 million pensioners has sparked outrage and new documents show that it will hit elderly couples worst of all.

One potential challenge is a judicial review launched in the Court of Sessions, Scotland’s highest court, by Govan Law Centre. Govan Law Centre argues that the Government did not carry out a detailed equality impact assessment. This law requires public bodies to consider how their decisions and actions will affect people with different “protected characteristics” - this includes age and disability. If successful it could still be paid this year.

An official government document High Level Equality Analysis of the policy to remove the annual payment of (normally) £200 to people aged 66-79 and £300 to people aged 80 or over made in November or December each year estimates that 880,000 pensioners who would be eligible for Pensions Credit don’t claim it.

It also says that official believe that the extra take up of Pensions Credit this year will amount to about 100,000 people - meaning 780,000 will still miss out. In terms of the numbers of people missing out under the Winter Fuel Payment axe it says: “This policy will reduce the numbers entitled from around 12m to 1.7m in the 1st year, dropping to 1.2m by the end of the scorecard period.”

In terms of those impacted the most it says: “This policy will have the highest proportional impact on couples, and a marginally greater impact on men than women. Older pensioners are less likely to be affected, but those which are affected will lose larger amounts.”