Man gets Winter Fuel Payment plus £8,000 bonus after DWP 'loophole'

Rafi Mauro-Benady

26 September 2024 at 0:09 pm·2-min read

Portrait of a happy British senior man at home using his cell phone while relaxing and smiling -retirement lifestyle concepts — -Credit: (Image: Getty)

A DWP ‘loophole’ saw a man acquire a small fortune of £8,000. The ‘loophole’ comes from the fact that although there’s an income limit on who can get Pension Credit, this limit is higher if you get Attendance Allowance (for older people who need help and support with day-to-day activities).

If you qualify for Attendance Allowance, the income threshold for qualifying for Pension Credit goes up by £82 per week (on top of your existing Attendance Allowance payment, which isn't counted as income). As a result of getting Pension Credit, you will also be eligible for Winter Fuel Payments.

The payment was recently axed for all pensioners except those who get Pension Credit.

A woman named Adele wrote to Money Saving Expert to thank them for sharing the crafty hack. She said: "Thank you for bringing AA [Attendance Allowance] to my attention. I've successfully claimed for my dad who has chronic arthritis - so he now gets an extra £72 per week.

“He has struggled for years, he'd not been able to claim Pension Credit previously as he has a small private pension. Now he has AA, he's also eligible for a further £35 per week Pension Credit, and his Housing Benefit has been increased by £40 per week.

“So a total extra of £150 per week - a huge help, and he will still be eligible for Winter Fuel Allowance, so will receive annually almost £8,000 extra. It will change his life and I'm really grateful to you."

Plans to raise the station pension by £460 next year mean that almost 350,000 pensioners will be pushed into paying £92 tax as their income rises above the tax threshold. — This crafty DWP 'loophole' netted one pensioner an extra £150 per week

Those who receive Pension Credit also get the following benefits:

Housing Benefit if you rent the property you live in
Winter Fuel Payment
Support for Mortgage Interest if you own the property you live in
a Council Tax discount
a free TV licence if you’re aged 75 or over
help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit
help with your heating costs through the Warm Home Discount Scheme
a discount on the Royal Mail redirection service if you’re moving house

Find out more on gov.uk.

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