British pensioners are urged to check whether they can receive winter fuel payments after the policy has changed under the Labour Government.
Policy Change for Winter Fuel Payments
The previously tax-free benefit readily available to all above the pension age has just undergone a policy change which limits those over the state pension age who receive pension credit or alternative means-tested support.
Campaign to Raise Awareness for Pensioner
The new government is initiating a campaign to ensure pensioners know about the changes, as thousands are yet to claim despite their eligibility.
Claims Until 21st December 2024
This drive will identify households not claiming when eligible and encourage them to apply by December 21st.
“Myths” Have Deterred Pensioners From Claiming Pension Credit
Many have strayed away from the pension credit because false information is a deterrent, and the government hopes to banish the “myths.”
Pension Credit Treated on a One-One Basis
It has been said that owning a home, having savings and receiving a pension are not necessarily hurdles to acquiring the pension credit, and eligibility needs to be checked before assumptions are made.
Cuts to Fix the £22 Billion Hole in Public Finances
Chancellor Rachel Reeves’ recent decisions and changes have been the point of contention. She has had to make drastic changes to fix the £22 billion hole in the public finances.
Labour Government Blaming the Conservatives
The Labour government has blamed the Conservatives for “covering up” the missing finances, and now severe changes must be made to avert the crisis.
“Difficult Decisions” Need to Be Made
Reeves has backed her decisions to make the cuts, stating that she must make “some difficult decisions” due to the “dire state of the public finances” they acquired from the Tories.
10 Million Pensioners Left Out
With the policy change, the number of those entitled to the funding will drastically decrease from an estimated 11,4 million to a mere 1.5 million.
Treasury to Save £1,4 Billion Annually
The 10 billion people affected who will no longer qualify will save the Treasury around £1,4 billion annually.
“Target” Those in Need
The Treasury has justified the cuts, saying that “this will better target support for heating costs at those who need it.”
Energy Bill Rise Set for October
This comes after experts warned that the energy bill would rise significantly by £146 in October alone. This is the latest increase since the Russian invasion of Ukraine, which caused the global energy crisis.
Under and Over 80 Years Receive Different Funds
In previous years, households with recipients under 80 received £200, and those over 80 received £300.
880 000 Yet to Claim for Pension Credit
According to the Department for Work and Pensions, 1.4 million pensioners are already receiving pension credit, but over 880,000 households have yet to claim and are eligible for the benefit.
Those Above the Benefit Threshold Affected the Most
There is an issue, though, whereby those just above the benefits threshold will be impacted the most. They can only receive the winter fuel payment if they claim the pension credit, which they must first do to qualify for the winter benefit.
Many Pensioners Are Yet to Claim
An estimated 800,000 eligible pensioners do not claim pension credit and will, therefore, not receive the winter fuel payments.
3,3% Reduction in Pension if Winter Fuel Payments Not Received
Ros Altmann, a former Conservative pensions minister, has asserted that for pensioners aged 80 years and above who do not claim pension credit, the removal of winter fuel payments effectively amounts to a 3.3% reduction in their pensions.
If Eligible Claim for Pension Credit Bill Could Surmount the Save
According to a report from the think tank Policy in Practice, the decision could be counterproductive if the estimated 800,00 retirees eligible for the pension credit decided to apply for it, resulting in a £3,8 billion bill.
Does MS Reeves Hate the Pensioners?
Former Prime Minister Rishi Sunak was asked before the election why he “hated pensioners.” However, it’s just a matter of time before this question is redirected to Ms Reeves.
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