New DWP plan could automatically give you an extra £300

In a move to bolster the financial well-being of Britain's older population, Prime Minister Keir Starmer and Chancellor Rachel Reeves have announced an initiative ensuring that pensioners on Housing Benefit are automatically assessed for Pension Credit eligibility. This effort by the Department for Work and Pensions (DWP) and local councils forms part of Labour's comprehensive plan to drive up the benefits uptake, ultimately unlocking additional perks such as the Winter Fuel Payment which could provide up to £300 each year.

Latest DWP statistics revealed over 1.1 million pensioners were benefiting from Housing Benefit as of late May, while nearly 1.4 million have been already receiving approximately £3,900 annually in vital extra support from Pension Credit.

Speaking about the collaboration between multiple bodies, the Chancellor highlighted: "We are working with organisations such as Age UK and local authorities. All local authorities."

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Chancellor Reeves further detailed their approach by stating: "The Department for Work and Pensions will also bring together the administration of Pension Credit and Housing Benefit, so that pensioner households receiving Housing Benefit will also receive any Pension Credit they are entitled to - something the previous Government deferred for years, despite knowing that the poorest pensioners were missing out".

At Wednesday's Prime Minister's Questions, Sir Keir briefed the Commons on the challenging yet necessary economic choices Labour has adopted to stabilize the UK's financial landscape, including the introduction of means-testing for the Winter Fuel Payment, as per updates from the Daily Record, reports the Manchester Evening News.

Approximately 10 million State Pension age residents across Great Britain are set to miss out on the annual support they receive for heating bills, which ranges from £100 to £300. This year, around 1.5 million individuals are expected to benefit from this payment; however, nearly 900,000 eligible pensioners currently do not claim the assistance they're entitled to.

Tackling the issue of unclaimed benefits, Sir Keir said: "Some 880,000 pensioners are not taking up Pension Credit, and we intend to turn that around. We will align Housing Benefit and Pension Credit - something the previous Government deferred year after year - and, because of our commitment to the Triple Lock, pensions are projected to increase by over £1,000 in the next five years."

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The absence of a formal review into how this policy change might affect fuel poverty levels in the upcoming winter has sparked concerns. Labour MP Mary Glindon questioned the Secretary of State for Energy Security and Net Zero, asking if an assessment regarding the "potential impact of means testing the winter fuel payment on levels of fuel poverty in the winter of 2024-25" will be carried out.

Minister for Energy Consumers Miatta Fahnbulleh MP shared in a written statement on Wednesday: "The Department has not made an assessment of the potential impact of means testing the Winter Fuel Payment on levels of fuel poverty in winter 2024-25."

Additionally, she mentioned: "A statistical publication estimating the rate of fuel poverty for those in receipt of Winter Fuel Payment in 2023, and the proportion of households who would be in fuel poverty under new eligibility criteria, will be published in due course."

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Following a pilot last summer, the DWP reached out to thousands of pensioner households with a letter-writing campaign to nudge them to apply for Pension Credit, using data obtained from local authorities. This step seems to allude to the Department's willingness to address discrepancies between Housing Benefit and Pension Credit.

According to existing data, throughout Great Britain, Pension Credit claims amount to 1,359,976 while those for pensioner Housing Benefit are recorded at 1,145,642a significant gap of 214,334 claims. Worth remembering is that Housing Benefit is a legacy benefit, which is gradually moving claimants to Universal Credit.

For those looking into Pension Credit, heres a quick overview including people who should verify if they're eligible, the application process, and potential advantages it could bring. Remarkably, even a minimal Pension Credit award can unlock further financial help, like qualifying for Winter Fuel Payments.

Here's how to check if you're eligible for Pension Credit

Older people, or their loved ones, can quickly check their eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV. UK.

Alternatively, pensioners can ring up the Pension Credit helpline to make a claim at 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.

What exactly is Pension Credit?

Pension Credit provides extra cash to help with living costs for those over State Pension age and on a low income. It can also unlock access to a range of other benefits.

The benefit boosts income to a minimum of £218.15 per week for single pensioners and £332.95 for couples - more if you have a disability or caring responsibilities. Those with a severe disability, carers, and those responsible for a child or young person living with them could receive additional funds.

Extra help if you qualify for Pension Credit

If you're eligible for Pension Credit, you can also get other help.

Mixed-aged older couples and Pension Credit

In May 2019, the law changed so that a 'mixed age couple' - a duo where one partner is of State Pension age and the other is below it - are considered to be a 'working age' couple when assessing eligibility for means-tested benefits. This means they can't claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age.

Before the Department for Work and Pensions (DWP) made this change, a couple with mixed ages could qualify to claim the more generous State Pension age benefits when just one partner reached State Pension age.

How to make a claim

To check your entitlement, give the Pension Credit helpline a ring on 0800 99 1234