DWP outcry as rules mean many pensioners just miss out on Winter Fuel Payment

A group of MPs is demanding a more generous threshold for access to Pension Credit and the Winter Fuel Payment. An early day motion has been tabled, arguing that pensioners with modest incomes are narrowly missing out on the £200 or £300 payment.

The eligibility for the Winter Fuel Payment has been altered by Labour so that it's no longer a universal state pension age benefit. Now, only those on certain means-tested benefits will receive the support, including those on Pension Credit.

The motion states: "That this House notes that the current threshold of pension support to open the gateway of winter fuel allowance is too low; further notes the need to change the cliff-edge nature of the Pension Credit threshold". 17 Labour MPs have expressed their support for the motion, which "calls upon the Government to capture the gateway support for those citizens with small occupational pensions that take them just above the threshold".

Pension Credit boosts a person's income up to £218.15 for single claimants and up to £332.95 for couples, so your income needs to be below these amounts to qualify. Some people may still be entitled to the benefit if they have an income higher than these amounts, as Pension Credit provides additional payments in certain circumstances, such as if you have a disability, if you care for someone or if you have savings.

An individual receiving the full new state pension of £221.20 per week wouldn't be eligible for the standard Pension Credit top-up, whereas the full basic state pension stands at £169.50 per week.

This is the full list of MPs backing the motion:

• Mike Amesbury
• Kim Johnson
• Andrew Cooper
• Sarah Russell
• Chris Webb
• Connor Naismith
• Charlotte Nichols
• Sarah Hall
• Paula Barker
• David Baines
• Marie Rimmer
• Grahame Morris
• Andrew Ranger
• Steve Witherden
• Jim Shannon
• Bell Ribeiro-Addy
• Jon Trickett
• Lorraine Beavers

A person can put in their Pension Credit claim as soon as they reach state pension age and you do not have to be claiming your state pension to get the support. The benefit is hugely underclaimed with over 800,000 people missing out, with the average claim providing a £4,000 a year income boost.

Claiming Pension Credit makes you eligible for other Government help, such as council tax discounts, Housing Benefit and the Support for Mortgage Interest scheme. The government says the eligibility rules on the winter payment are being tightened to fill a black hole in UK finances they say the Tories are to blame for.