New DWP update on widening Winter Fuel Payment eligibility for people over State Pension age
Labour MP Rachel Maskell is continuing to press the Department for Work and Pensions (DWP) on its decision to limit issuing Winter Fuel Payments to people over State Pension age on income-related benefits. New regulations come into force on Monday, September 16 that will see payments of between £100 and £300 only made to those on Pension Credit, Tax Credits and other means-tested benefits.
As a result of the eligibility rule change, around 10 million pensioners are set to miss out on the annual healing bill help, including 850,000 living in Scotland. However, Ms Maskell urged the DWP to consider issuing payments based on ‘Council Tax bands or as a payment liable to tax’.
In a written response on Thursday, Pensions Minister Emma Renolds said Winter Fuel Payments based on Council Tax banding “would not be possible” adding “Council Tax banding is not always an accurate reflection of someone’s income”.
READ MORE: New update on calls to give Winter Fuel Payments to all people over State Pension age
READ MORE: Older people on Attendance Allowance could be eligible for Winter Fuel Payments of up to £300
On the proposal to make Winter Fuel Payments liable to tax, Ms Reynolds said: “Matters of taxation are for His Majesty’s Treasury. The tax treatment of social security benefits is based on the type of payment and why it is provided.
“In general, benefits that are designed to replace income are taxable, including the State Pension. Benefits that meet specific costs, such as Winter Fuel Payments, are not taxable.”
In another written question, Ms Maskell also urged the DWP to “contact every pensioner on Housing Benefit to encourage them to take up Pension Credit”.
The Pensions Minister responded: “The Deputy Prime Minister and the Secretary of State for Work and Pensions wrote to all local authorities on 20th August.
“We are asking that local authorities support our national Pension Credit campaign and help us reach those eligible pensioners who have not claimed Pension Credit, so they continue to receive an annual Winter Fuel Payment.”
She added building on last year’s ‘Invitation to Claim’ trial, the DWP will be directly contacting approximately 120,000 pensioner households who are in receipt of Housing Benefit and who may also be eligible for, but not currently claiming, Pension Credit.
She said: “We will be inviting these households to apply for Pension Credit before the 21 December backdating deadline, in order to ensure that if they are eligible they will also qualify for a Winter Fuel Payment.”
In responses to more than a dozen written questions from MPs concerned about the change to Winter Fuel Payment, the Pensions Ministers reiterated the DWP is working with “external partners, local authorities and the devolved governments to boost the take-up of Pension Credit”.
However, in another response to a written question from Democratic Unionist Party MP Gregory Campbell, she couldn’t say how many pensioners she would like to see sign up, in response to a nationwide TV and radio campaign starting on Monday.
Ms Reynolds replied: “No targets have been set, the Government wants everyone eligible for Pension Credit, but not currently claiming it, to receive the benefits they are entitled to.
“DWP launched the Pension Credit Week of Action on September 2, joining forces with national charities, broadcasters and local authorities to encourage pensioners to check their eligibility and make a claim.
“From September 16, we will be running a national marketing campaign on a range of channels. The campaign will target potential pension-age customers, as well as friends and family who can encourage and support them to apply.
“Our future campaign messaging will also focus on encouraging pensioners to apply for pension credit before December 21 2024, which is the last date for making a successful backdated claim for Pension Credit in order to receive a winter fuel payment.”
MPs voted 348 to 228 to cut the seasonal payment for all but the country’s poorest pensioners on Tuesday, rejecting a Conservative bid for the controversial policy to be blocked. Ms Maskell did not take part in the vote.
Consumer champion Martin Lewis and former pensions minister Sir Steve Webb have both previously suggested using Council Tax bands as part of the eligibility criteria for Winter Fuel Payment.