Chancellor Rachel Reeves has introduced significant changes to the eligibility criteria for the Winter Fuel Payment, affecting many pensioners. This article provides a detailed overview of the new criteria, pension credit, and additional benefits available to those who qualify.
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What is pension credit?
Pension credit is a means-tested benefit designed to support low-income pensioners and ensure they have enough to cover their everyday living costs.
- Income Boost: Provides an average income boost of approximately £3,900 per year.
- Unclaimed Benefits: Approximately 850,000 eligible pensioners are not claiming it – roughly one in three.
Eligibility for Winter Fuel Payment
The Winter Fuel Payment is a crucial financial aid for pensioners to help with heating bills during the colder months.
- New Criteria: Only households with someone over state pension age (66) and receiving pension credit are eligible.
- Previous Criteria: In 2023-24, payments worth between £250 and £600, including an extra “cost of living payment,” could be claimed by those born before 25 September 1957.
- Current Payment:
- Households with someone over 66 and receiving pension credit: £200
- Households with someone over 80 and receiving pension credit: £300
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Eligibility Criteria for Pension Credit
Specific criteria must be met to qualify for pension credit, ensuring that the benefit reaches those who need it most.
- Age Requirement: Must be above state pension age (currently 66).
- Residency Status: Non-British citizens need settled or pre-settled status under the EU Settlement Scheme.
- Income Limits:
- Single pensioners: Weekly income up to £218
- Couples (both above state pension age): Weekly income up to £332
- Additional Considerations:
- Disability or carer status may allow for higher income limits.
- Savings exceeding £10,000 may reduce the amount of pension credit.
How Much Can You Get?
Pension credit consists of two elements: guarantee credit and savings credit, each providing different levels of financial support.
- Guarantee Credit:
- Single: Tops up weekly income to £218.15
- Couple: Tops up joint weekly income to £332.95
- Savings Credit:
- Single: Maximum £17.01
- Couple: Maximum £19.04
- Additional Payments:
- Carer addition: Up to £45.60 a week
- Severe disability addition: Up to £81.50 a week
How to Make a Claim
Applying for pension credit is straightforward, with multiple methods available to suit different preferences.
- Online: Via the government website
- Phone: Call the pension credit claim line on 0800 99 1234
- Post: Print and fill in a Pension Credit claim form, then send it to Freepost, DWP Pensions Service 3
Required Information:
- National Insurance number
- Details of income, savings, and investments
Additional Benefits with Pension Credit
When you start receiving pension credit, you become eligible for a range of additional grants and savings opportunities. These benefits can significantly improve the financial security and well-being of pensioners, providing important support during retirement.
- Winter Fuel Payment: Up to £300 for eligible pensioners
- Free TV Licence for Over 75s: Saving £169.50 per year
- Discounted Broadband: Available from some providers
- Free Insulation and Boiler Grants: For private tenants and homeowners
- Reduced Medical Expenses: Free dental care, contributions to new glasses, help with transport to hospital, and free NHS prescriptions
- Reduced Council Tax: Possible reduction or full payment for those receiving guaranteed credit
- Warm Home Discount: Help with electricity bills in addition to the Winter Fuel Payment
- Housing Benefit: Assistance with mortgage payments or rent for those struggling with housing costs
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