Vital government raises pension credit take-up if it is to go through with winter fuel payments reform

The Chancellor announced this week that fuel payments in England and Wales will be restricted to those on benefits, such as pension credit, from this winter. 

The government has defended the move as necessary to help tackle a reported £22 billion black hole in public finances.  
 
Pension credit is a benefit designed to support those above state pension age on the lowest retirement incomes. People with an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with a partner, are eligible to claim dependent on levels of savings and other criteria. 

Despite national campaigns, there's still a lack of awareness and perceived eligibility for Pension Credit. Around one in three people who are eligible do not claim, with the amount going unclaimed estimated to be £1.7bn nationally. 

The changes to winter fuel payments also risk harming those older people whose income is just above the limit to claim for pension credit, and those who have a health condition that means they must keep their home particularly warm.  
 
The Centre for Ageing Better is concerned that hundreds of thousands of older people might miss out on vital support to keep them warm through the winter with potentially devastating consequences to their health. 

"From this winter, pensioners will only get the winter fuel payment if they are in receipt of another benefit, such as pension credit.  
 
“But we know that fewer than two in three people who are entitled to pension credit, and who it could make a huge difference to, claim it. 

"The winter fuel payment is particularly important, as older people are more likely to live in cold and poor-quality homes and are more vulnerable to the health impacts of cold. 

"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 and therefore the most likely to miss out. 

"However, if the government is going down this route, it makes it more important than ever that they develop clear targets to improve the uptake of pension credit, including exploring making it an automatic payment.  

"The government also needs to deliver accessible and affordable ways to support older people to fix their cold and dangerous homes, including through insulation and raised efficiency standards, to reduce the necessity of winter fuel payments."