Pensioners eligible for Pension Credit must apply before 21st December to ensure they receive up to £300 in winter fuel payments this year. The winter fuel payment was previously made automatically and pensioners did not need to apply. However, Chancellor of the Exchequer Rachel Reeves made the decision earlier this year to make the payments means-tested moving forward in an effort to plug what she described as a "£22bn hole in the public finances".
Those who are eligible can receive £200 if they were born between 23rd September 1944 and 22nd September 1958. While they will receive £300 if they were born before 23rd September 1944.
Those already in receipt of certain benefits automatically qualify for the winter fuel payment under the new rules and will have received a letter to this effect in either October or November. But those not in receipt of certain benefits, such as Pension Credit, won't receive the winter fuel payment even if they qualify unless they apply for Pension Credit.
Disability Rights UK estimated that approximately 780,000 pensioners on low incomes won't apply for Pension Credit despite being eligible meaning that they'll miss out on money they're entitled to.
As such, if you did not receive a letter but believe you are eligible, you should apply for Pension Credit before 21st December. If you're planning on applying by phone, you'll need to do so by next Friday, 20th December as this will be the last working day for the Pension Credit claim line before the deadline. Applying before these dates will allow you to backdate your claim by three months meaning you can receive the pension credit you're entitled to as well as qualify for the 2024/2025 winter fuel payment.
Who is eligible for winter fuel payments under the new rules?
To be eligible for winter fuel payment under the new rules, you must:
- Live in England, Wales or Northern Ireland
- Have been born before 23rd September 1958
- Receive either Pension Credit, Universal Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Income Support, Child Tax Credit or Working Tax Credit.
As part of the eligibility criteria, you'll also need to have been receiving one of these benefits during the qualifying week which is 16th to 22nd September 2024. Applying for Pension Credit by 21st December, if you are eligible to receive it, ensures payments can be backdated appropriately, so that you meet the new winter fuel payment eligibility criteria. You won't need to apply for the winter fuel payment separately. Winter fuel payments will be made in November or December if you're eligible.
What is Pension Credit?
Pension Credit is designed to top up your income in retirement to ensure that you receive at least £218.95 if you're single or £332.95 if you have a partner. Beyond topping up your income, receiving Pension Credit entitles you to other benefits such as a Council Tax discount, a free TV licence if you're 75 or over and other benefits such as Housing Benefit if you rent.
It may also give access to other benefits like the Warm Home Discount which is a one-off £150 discount off your electricity bill. Your energy supplier applies this automatically if you're eligible e.g. if you get the Guarantee Credit element of Pension Credit.
Who is eligible for Pension Credit?
To qualify for Pension Credit, you must:
- have reached the State Pension age
- live in England, Wales or Scotland
- have a weekly income of less than £218.15 if you're single or £332.95 if you have a partner
Pension Credit will top up your income so that you receive at least £218.15 a week if you're single or £332.95 if you have a partner. In limited circumstances, you might be eligible if you have a higher income. For example, if you have a disability or you care for someone.
Having savings doesn't preclude you from applying either. If you have less than £10,000 in savings or investments, this won't affect your claim. For every £500 above £10,000 this will count as £1 in income per week. Someone with £12,000 in savings will have £4 in "income" added per week for eligibility purposes and to work out how much they'll be paid.
Working out whether you're eligible can be complicated, so it's worth using the Pension Credit calculator if possible.
Use the Pension Credit calculator
If you're unsure whether you meet the criteria for Pension Credit, you should use the pension credit calculator on the gov.uk website. You'll need to answer several questions about your circumstances to work out whether you can use the calculator. If you can, you'll then need to answer several questions about you (and your partner's) income, savings, and any other benefits you claim currently. You'll be told at the end whether you're likely to be eligible for Pension Credit and how much you could get. The whole process only takes a few minutes to complete.
How to apply for Pension Credit
You can apply for Pension Credit online via the government website, via the phone, or through the post. Applying online is likely the quickest and easiest way to complete the form.
You'll need to have personal information about yourself (and your partner if you have one). This includes your national insurance number(s) as well as details about your income, savings and investments. You may also need to provide your bank account details.
If you want to apply via the phone, you'll need to ring the Pension Credit claim line on 0800 99 1234 between Monday to Friday from 8am to 6pm. Other accessible options are available on the government website.
You can also apply by post by printing out and filling in the 24-page Pension Credit claim form available via the website and then mailing it to Freepost DWP Pensions Service 3.
If you're struggling with the application, you can get free advice from organisations like AgeUK and Citizens Advice. If you're successful, you'll automatically receive the winter fuel payment as well.
