Labour told to relax Winter Fuel Payments restrictions by looking at home value
Labour has been told to relax the Winter Fuel Payment raid to help the poorest of pensioners by bringing home value into the equation when working out eligibility. The calls were made by MoneySavingExpert founder Martin Lewis and Labour MP Rachel Maskell but the government rejected the idea saying watering down the restrictions based on council tax bands was not workable.
Labour voted through the bill to restrict the previously universal Winter Fuel Payment to only the poorest of pensioners who claim pension credit Tuesday (September 10). 11.4 million people received the payment of £200 to £300 previously but now just 1.5 million will receive it this winter which Labour hopes will save £1.4 billion a year.
Martin Lewis said the government should take into account the value of people's homes when determining whether they should receive the allowance rather than just if they receive the means-tested benefit, pension credit, alone.
READ MORE: Kate Middleton and Prince William's heartfelt gesture to Peckham food bank raided by thieves
He described it as “an imperfect but workable proxy for lower household incomes”, the Telegraph reported.
Labour MP Rachel Maskell echoed the idea of assessing property value when allocating the allowance asking pensions minister Emma Reynolds in a written question if would she assess the “potential merits” of linking the handout to council tax bands.
However, Ms Reynolds said it would "not be possible" to use council tax bands a a way to means test allocating the payment to the poorest pensioners because her "department does not hold data on people’s council tax banding," she said, “Additionally, [a] council tax band is not always an accurate reflection of someone’s income.”
Ms Maskell, while supporting that council tax bands should be brought into the question, said she was skeptical about the extent of Martin Lewis' suggestion. Mr Lewis said the payments could be linked with bands A, B, C and D, representing some of the lowest-value properties.
But in her written question she said: "I think there’s a solution in there that the Government needs to explore; that may mean the Government may not need to take [their winter fuel payment plans] back to the House.”
In a separate question, Ms Maskell asked whether the government would “the potential merits of establishing a fuel poverty prescription that can be given by GPs”.
This has been previously implemented by local authorities including in Nottinghamshire where Warm Homes on Prescription projects aimed to "help low-income residents with cold-sensitive, long-term health conditions to achieve affordable warmth” the Telegraph reported.
Ms Reynolds replied: “This Government takes fuel poverty extremely seriously. The Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low-carbon heating and improved insulation to reduce emissions and cut bills.”
Who is now eligible for the winter fuel payment?
The vast majority of eligible people will only receive the winter fuel payments if they are already on pension credit. In this case itn will be paid automatically without a direct claim.
Pension credit is a state pension top up which itself is worth thousands a year, the BBC said. You could be eligible for pension credit if you are above state pension age and have an income of less than £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account, the BBC reported.
Disabled people, carers, and those with housing costs could still be eligible even with more income or savings. If people are entitled to pension credit for at least one day between 16 and 22 September, even if they do not immediately claim it, then they will receive the winter fuel payment.
You can check your eligibility for pension credit via the government's online calculator, external. Information is also available on how to make a claim, external and a phone line is available on weekdays - 0800 99 1234.
The final date for making a backdated claim for pension credit - to make sure you can receive this year's winter fuel payment - is 21 December.
Get the biggest stories from around London straight to your inbox. Sign up to MyLondon's The 12 HERE for the 12 biggest stories each day.