The government continues to face criticism over its decision to scrap winter fuel allowances.
With the Chancellor’s first Budget due to be presented on October 30th, and opposition from the public, the Opposition and within the Labour Party, it is still everything many are talking about.
What were the rules before?
The benefit was available to anyone of state pension age or above.
Last year, people born before September 25, 1957 were paid £200, while those born before September 25, 1943 were paid £300.
And there was a living allowance of £300 for each pensioner household.
Who is currently eligible for the Winter Fuel Subsidy?
From now on, it will be limited to people over pension age who are receiving pension credit or a limited number of other benefits.
These are Income Support, income-based Jobseeker’s Allowance, income-linked Employment and Support Allowance and Universal Credit.
The changes will reduce the number of people covered from 11.4 million to about 1.5 million.
The government claims that millions of pensioners who previously received benefits did not need them, and the changes will ensure that payments are only given to those who really need them.
Who is eligible for pension relief?
Pension allowances are offered to pensioners whose income falls below a certain threshold, and the payment brings their income up to this amount.
If you have a partner, your income is calculated jointly.
Income includes public pensions, private pensions, salary and social security benefits such as carer’s allowances.
However, not everything counts as income – disability allowance, housing benefit and council tax reduction are some of the benefits that do not count as income.
Previous estimates released by the government showed that up to 850,000 households who were eligible for pension credits in 2019-20 did not claim the benefit.
The benefit can be claimed over the phone and online, and an online calculator allows pensioners to check whether they are eligible and get an estimate of how much they may receive.
How are winter fuel fees paid?
Most people have received their winter fuel payment automatically, and those who are eligible should be receiving a letter in the fall stating how much they will be paid.
