Pensioners across the UK face an urgent deadline this Saturday as they rush to secure the Pension Credit required to access the Winter Fuel Payment, potentially worth up to £300. Advocates, including financial experts, are sounding the alarm, emphasizing the need for eligible individuals to act swiftly to avoid missing out on these much-needed funds.
The deadline for applying for the Pension Credit, which is key to qualifying for the Winter Fuel Payment for the 2024/25 winter season, is 11:59 p.m. on December 21, 2024. Therefore, it is imperative for those eligible to submit their claims as soon as possible. According to the government estimates, there are around 760,000 households who qualify for Pension Credit but have not yet claimed it.
Chancellor Rachel Reeves announced significant reforms earlier this year, scrapping universal entitlements to the Winter Fuel Payment and switching to a means-tested approach. Now, only those claiming Pension Credit or other forms of means-tested benefits will have access to the Winter Fuel Payment. This change, driven by the need to fill what Reeves described as a "financial black hole" inherited from previous administrations, is projected to save the Treasury approximately £1.4 billion this financial year.
“Over one million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take-up has seen applications more than double with over 40,000 more pensioners now receiving it, as well as the winter fuel payment,” said the government spokesperson. Despite this, many are concerned as the number of pensioners receiving the Winter Fuel Payment is expected to plummet from approximately 11.4 million to just 1.5 million.
For those born before September 23, 1958, the Winter Fuel Payment could amount to either £200 or £300 depending on the eligibility for Pension Credit or other key benefits. Pension Credit assists with weekly income, providing up to £218.15 for single pensioners and £332.95 for couples.
Compounding the urgency, there are concerns from charities and advocates about the impact of these reforms, especially on those already vulnerable and reliant on such support. Age UK criticized the changes, arguing, "We just don't think it's fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it."
The application process is open online until the deadline, but for those needing assistance, phone lines have extended service hours on Saturday. The Department for Work and Pensions (DWP) will support claims through phone lines open from 8:00 a.m. until 3:15 p.m. on the final day.
Financial experts, such as MoneySavingExpert’s Martin Lewis, strongly encourage pensioners to check their eligibility. Lewis pointed out to his followers, "I'd urgently suggest any state pensioners on low income check now if you're eligible for Pension Credit, which is typically worth £4,000 annually. Do it now; you'll also get the Winter Fuel Payment."
Lewis rationalizes the urgency: even if one's income is slightly above the threshold, there are additional circumstances, like disabilities or high housing costs, which could still make applicants eligible.
"Pension credit is not just about enhancing your heating allowances; it opens doors to other significant support for low-income pensioners, such as free dental treatment and TV licenses for those over 75,” Lewis emphasized.
The struggles of applicants underline the challenges within the reformed system. Many have reported excessive delays, occasionally exceeding 100 days, to receive their payments, with backlogs exacerbated by the changes. Christopher Hewett, 69, from Norfolk, shared his frustrations: "I applied straight away after hearing about the changes to the winter fuel payment, but I have yet to receive any feedback. It’s worrying, especially as winter sets in, and I had counted on this payment to help with heating."
This pattern of delays and inefficiencies has raised concerns about the Department for Work and Pensions’ ability to process claims under the new regime. With waiting times reaching up to 65 working days on average, as reported by The Independent, advocates have stressed the importance of timely responses to alleviate the stress and confusion many pensioners face.
Jon Greer, head of retirement policy at Quilter, stated: "It is vitally important for pensioners on low incomes to check their eligibility for benefits like Pension Credit before it’s too late." Tom Selby, public policy director at AJ Bell, echoed these sentiments, noting: "Even if you’re waiting for just the smallest amount of Pension Credit, it could still mean accessing significant winter fuel support."
Government officials claim they are doing their best to handle the influx of pension credit applications, recently deploying around 500 additional staff to help speed up the process. With the holidays fast approaching, ensuring access to these supports is more important than ever. "Many pensioners will have to choose between heating and eating this winter," warns critics of the new laws. They urge the government to reconsider the policy changes affecting vulnerable households.
This Saturday's deadline isn't merely about securing funds; for countless pensioners, it symbolizes hope for the coming winter months and the associated costs of heating their homes. With so much at stake, pensioners and their families must act swiftly to secure their financial future.
