Ministers have launched a pension credit publicity campaign to minimise the impact of the government’s decision to radically restrict winter fuel payments.
Last month the chancellor, Rachel Reeves, introduced a means test for the winter fuel payments, which have been a universal benefit available to all pensioners since 1997, so that only those on pension credit would qualify, as part of the “difficult decisions” she had to make having inherited a “dire state of public finances” from the Conservatives.
Reeves insists the government’s commitment to support pensioners remains, and cited the maintenance of the triple lock as an example of this.
But the government has faced mounting criticism and calls for the means-testing to be reversed, amid warnings Reeves’s move could risk millions of pensioners being forced to choose between eating a hot meal or turning the heating on this winter.
More than 370,000 people have signed Age UK’s petition alone, calling on the government to save the winter fuel payment which was cut, the charity says, “with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners”.
The impact of Reeves’s move are twofold. While government estimates are that 1.3 million households across England and Wales will continue to receive their winter fuel payments, analysis revealed earlier this month indicated about 130,000 people would miss out in the UK because they are up to £500 a year over the threshold for receiving pension credit, making them ineligible for the support. Analysts warned those people might end up worse off than some of those who qualified for the payment.
Additionally, campaigners have warned the pension triple lock would not be enough to offset the loss of the winter fuel payment.
While campaigners have estimated that about 850,000 pensioners are eligible for pension credit in the UK but are not claiming it, the government estimates this figure is higher and closer to 880,000.
Angela Rayner, the deputy prime minister, and Liz Kendall, the work and pensions secretary, are writing to local authorities and will join forces with them, older people’s charities and other groups this September for the annual pension credit week of action.
The government hopes its pension credit awareness drive will help identify households not claiming the benefit and encourage pensioners to apply by 21 December, which is the last date this year for people to make a backdated claim for pension credit in order to receive the winter fuel payment.
Officials hope the awareness drive in September will also tackle some of the myths that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving pension credit.
Over the next five years over 12 million pensioners will see their state pension increase by thousands of pounds as a result of the commitment to the triple lock. And the warm homes plan will support investment in insulation and low carbon heating – upgrading millions of homes over this parliament.
Liz Kendall, the work and pensions secretary, said: “The £22bn black hole in the public finances we have inherited has required us to take difficult decisions, but I am determined to ensure low-income pensioners are supported.
“That’s why I urge any pensioner, or their loved ones, to check if they could get pension credit. This government remains completely committed to pensioners which is why we’re protecting the income of over 12 million pensioners through the triple lock.”
The energy secretary, Ed Miliband, added: “Everyone has paid the price for over a decade of energy insecurity, which is why we are getting on with delivering clean power by 2030, alongside our ambitious warm homes plan.
“It is imperative that those eligible get the support they need this winter, which is why government will do everything it can to roll out pension credit, making sure as many people as possible qualify for the up to £300 winter fuel payment.”
