London (Parliament Politics Magazine) – Ministers have undertaken a pension credit publicity campaign to underestimate the impact of the government’s conclusion to radically restrict winter fuel payments.
How Will the New Pension Credit Campaign Affect Winter Fuel Payment Recipients?
Chancellor, Rachel Reeves presented a means test for the winter fuel payments, which have been a universal usefulness available to all pensioners since 1997, so that only those on pension credit would permit, as part of the “difficult decisions” she had to make holding inherited a “dire state of public finances” from the Conservatives.
Reeves urges the government’s commitment to help pensioners remains and mentioned the maintenance of the triple lock as an example of this. But the government has fronted mounting criticism and calls for the means-testing to be switched, amid signs Reeves’s move could risk millions of pensioners being compelled to choose between eating a hot meal or turning the heating on this winter.
More than 370,000 people have inscribed Age UK’s petition alone, calling on the state to save the winter fuel payment which was cut, the charity states, “with virtually no information and no compensatory measures to cover poor and vulnerable pensioners”.
What Are the Expected Impacts of Means-Testing Winter Fuel Payments?
The impact of Reeves’s move is twice. While government assessments are that 1.3 million households across England and Wales will persist in receiving their winter fuel payments, analysis indicated earlier this month indicated about 130,000 people would miss out in the UK because they are up to £500 a year over the brink of receiving pension credit, making them ineligible for the support. Analysts cautioned those people might end up worse off than some of those who qualified for the payment.
Additionally, campaigners have alerted that the pension triple lock would not be sufficient to offset the loss of the winter fuel payment. While campaigners have calculated that about 850,000 pensioners are suitable for pension credit in the UK but are not appropriating it, the government assesses this figure as higher and closer to 880,000.
What Steps Is the Government Taking to Mitigate the Impact of Winter Fuel Payment Cuts?
Angela Rayner, the deputy prime minister, and Liz Kendall, the work and pensions secretary, are reporting to local authorities and will join forces with them, older people’s charities and other bodies this September for the annual pension credit week of action. The government expects its pension credit awareness drive will assist in identifying households not claiming the benefit and encourage pensioners to apply by 21 December, which is the last date this year for people to create a backdated claim for pension credit to obtain the winter fuel payment.
Officials expect the awareness drive in September will also contain some of the myths that may stop people from applying, such as how holding savings, a pension or owning a home are not necessarily obstacles to receiving pension credit.