Experts highlight ‘unintended positives’ of DWP Winter Fuel Payment changes

While the nation debated how controversial and devastating Rachel Reeves’ changes to Winter Fuel Payment criteria would be, Which? Principal Researcher Paul Davies highlighted the quieter group of pensioners in favour of the changes. He also revealed the multiple positive side effects the change would have that don’t include saving money for the Department for Work and Pensions.

Speaking on the Which? Money Podcast, the researcher revealed that eligibility for Winter Fuel Payments has been a hot topic in professional circles for far longer than the public at large might realise. He explained: “It’s one we’ve been tracking for a number of years.

“We asked people what they felt about their winter fuel payment a few months ago, 49% said it should be kept for everyone, and 46% said it should be means-tested. Pensioners are split down the middle. A lot of pensioners understand that it’s unfair that everyone gets it.”

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Under the previous Winter Fuel Payment eligibility rules, you could receive a £200 or £300 seasonal payment if you were over state pension age and lived in the UK for at least one day during the qualifying week. Over 11 million pensioners received the payment annually, including those who were already well-off in retirement.

Paul revealed: “We’ve spoken to people who say they use it to give money to their grandchildren at Christmas or towards their next holiday, a lot of people give it to charity. It feels like the system hasn’t been quite right.”

The tightened eligibility criteria, with people now needing to claim a qualifying benefit to be eligible for Winter Fuel Payments, is an attempt to stop the DWP payments from going to people who may not need assistance affording their next holiday anyway. However, the expert admitted: “Whether the change is exactly spot on will be seen.”

As a result of the change, many pensioners have been scrambling to claim benefits like Pension Credit in order to maintain their eligibility. The expert noted: “One of the positive consequences of the change is more people applying for Pension Credit. It’s a positive unintended consequence.”

Pension Credit was previously one of the most under-claimed benefits, meaning many pensioner households were struggling financially simply because they weren’t claiming the support they were entitled to. In the 8 weeks following the Chancellor’s Winter Fuel Payment announcement, the DWP reported a 152% increase in Pension Credit applications compared to the 8 weeks before the announcement.