DWP Winter Fuel Payments cut savings will be 'far less than expected'

Winter Fuel Payments cut savings will be 'far less than expected'
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The £300 Winter Fuel Payments cut savings will be far LESS than expected, new analysis has found. The projected £1.4bn savings from her highly controversial cut to winter fuel payments are in doubt due to a take-up of Pension Credit from the Department for Work and Pensions (DWP).

The Observer newspaper has today reported a surge in claims for pension credit since the cut was announced means that any savings could be significantly lower than the Treasury had anticipated. It comes after applications skyrocketed 152 per cent.

Research from Policy in Practice suggests there could be 158,000 more claims than anticipated by the pension credit deadline in late December, costing an additional £246 million, and providing a significant dent in government coffers.

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Because claiming pension credit also opens up a series of other benefits for those claimants, the total costs could be up to £700m more than expected. “It’s great news that more pensioners are getting the financial support they need,” said Deven Ghelani, director of Policy in Practice.

“The increased income for some of the country’s poorest elderly citizens can have wider benefits, providing much needed relief during a cost of living crisis. We have seen unprecedented demand.“While this means the change is unlikely to save the Treasury as much money as it hoped, it has meant a life-changing boost in income for hundreds of thousands of pensioners living in poverty.”

A government spokesperson said: “We want people to get the benefits they are entitled to, which is why the government is working hard to drive up pension credit uptake. We are committed to supporting pensioners – with millions set to see their state pension rise by £1,700 this parliament through our commitment to the triple lock.

“However, given the dire state of the public finances we have inherited, it’s right that we target support to those who need it most.”