Winter Fuel Payment

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The Winter Fuel Payment is a state benefit paid once per year in England and Wales [1] to some people old enough to have been born before a specific date. It is intended to cover the additional costs of heating over the winter months. First introduced in 1997 as a universal benefit for pensioners, in 2024 it was changed so that it is only offered to pensioners who receive means tested benefits such as pension credit.

Contents

History

Establishment as a universal benefit

The payment was first introduced by the Labour Government in 1997 as a universal benefit for pensioners, and was first announced by Chancellor of the Exchequer in his Pre-Budget Statement of that year. [2] [3] [4]

Conversion to a means-tested benefit

In July 2024, Chancellor Rachel Reeves announced that the benefit would only be given to those in receipt of Pension Credit or other means-tested benefits. This removed the benefit from around 10 million pensioners. [5]

Backlash

In response to Reeves' announcement, over 500,000 people signed an Age UK petition calling on Reeves to reverse her decision, [6] though some in receipt of the benefit stated that they didn't need it and used the money for holidays instead. [7]

Knock-on effects

The Somerset Community Foundation (SCF) has said that donations to its "Surviving Winter" appeal are diminishing. The reason given is that it relied on people donating their unwanted winter fuel payments, and as those payments have now been scrapped for most pensioners, that source of income is no longer available. SCF, which started the fund in 2010, are now having to investigate other ways to raise money to help those who most need it. [8]

Community Resource, a Shropshire-based charity supporting vulnerable residents estimates that its donations might be down by thousands of pounds due to Reeves's policy. The charity says that about 40% of its donations are from pensioners donating their winter payment. [9]

In Workington, a thief convicted of stealing £350 from a male pensioner was spared a prison sentence in October after his lawyer told the court that the crime was no worse than that of Starmer in scrapping the winter fuel payment for pensioners. [10] [11]

Eligibility

Eligibility from 1997 to 2023 was based on age and residence. The qualifying age was initially 60, raised to 65 in 2010 and to 66 in 2018. From 2024 the benefit was only available to those in receipt of Pension Credit or other means-tested benefit. [12]

To be eligible for the benefit in a particular year, a person must have been born before a specific qualifying date (e.g. 23 September 1958 for payments for the winter 2024–2025). [12] Certain categories of people are excluded groups (prisoners, people receiving long-term free hospital care, those with certain immigration issues, and those living in care homes and receiving income-related benefits such as pension credit). [12] The benefit may also be applicable to those living abroad with a genuine and sufficient link to the UK (having lived or worked in the UK, or having family in the UK). [12]

Amount

The amount paid is greater for those aged 80 years and older and is set so that a person living alone (or with people ineligible for the payment) is paid twice as much as a person in a household where more than one person receives the payment. [13] In the winter 2024–2025 the amount paid was £200 to £300 depending on circumstances. [12] If the weather is particularly cold, a cold weather payment may also be made. [14]

Administration

In Great Britain, the Social Fund Winter Fuel Payment Regulations 2000 [15] govern the system, under the Social Security Contributions and Benefits Act 1992. In Northern Ireland the Social Fund Winter Fuel Payment Regulations (Northern Ireland) 2000 [16] govern the system.

In the winter of 2011–12, the benefit cost the UK Government £2.1 billion and was paid out to 12.7 million people. [17] It was criticised by Paul Burstow (former care services minister) in 2013 for its lack of targeting, Burstow saying that "80% of older people do not require [the benefit]" and proposing that it be only given to pensioners on pension credit which he said would save £1.5 billion a year. [18] He suggested that the savings be used to help implement the findings of the Dilnot Commission into social care. [18] However, in 2013 about 1 million of 3 million eligible people did not claim pension credit. [17]

Scotland

Winter Fuel Payment is not available to people living in Scotland, as the Scottish government plans to introduce a Pension Age Winter Heating Payment to replace it. "For winter 2024–2025, the Department for Work and Pensions (DWP) has committed to make payments this winter to eligible pensioners in Scotland on terms equivalent to Winter Fuel payments in England and Wales." [19] [20]

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The United Kingdom government's decision on 29 July 2024 to abolish the winter fuel payment for all but the poorest pensioners gave rise to a significant backlash. Negative reaction came from Labour MPs, opposition MPs, trade unions, pensioner organisations, and the general public.

References

  1. ↑ Mackley, Andrew; Hobson, Frank; Kennedy, Steven (9 September 2024). Changes to Winter Fuel Payment eligibility rules (PDF). House of Commons Library Research Briefings. House of Commons Library. 10,094. Retrieved 10 September 2024.
  2. ↑ "Winter Fuel Payments update" (PDF). gov.uk. 2016. Retrieved 10 June 2016.
  3. ↑ Kara, Maryam; Bulbul, Nuray (9 October 2024). "What is the winter fuel payment? MSPs favour Swinney's call for winter fuel payments to be restored for all". The Evening Standard. Retrieved 27 October 2024.
  4. ↑ Eaton, George (9 September 2024). "How much trouble is Labour in?". The New Statesman. Retrieved 27 October 2024.
  5. ↑ "Winter fuel payments scrapped for millions". BBC News . 29 July 2024. Retrieved 30 July 2024.
  6. ↑ "New petition calls for Winter Fuel Payments to be made to every person over State Pension age". Daily Record . 31 July 2024. Retrieved 1 August 2024.
  7. ↑ "Winter fuel payment: We spend it on holidays, say some pensioners". BBC News. 14 September 2024. Retrieved 25 September 2024.
  8. ↑ Grierson, Adam (12 September 2024). "Winter fuel cash charity sees drop in donations". BBC News.
  9. ↑ Dawkins, Andrew; Green, Adam (11 September 2024). "Donation warning after winter fuel payment decision". BBC News.
  10. ↑ Evans, Martin (24 October 2024). "Thief who stole £350 from pensioner avoids jail after arguing it was no worse than winter fuel raid". The Telegraph.
  11. ↑ Chappell, Peter (25 October 2024). "Thief spared jail after stealing 'as much as Labour took from pensioners'". The Times.
  12. 1 2 3 4 5 "Winter Fuel Payment: Eligibility". gov.uk. 2024. Retrieved 4 September 2024.
  13. ↑ "Winter Fuel Payment: What you'll get". gov.uk. 2013. Retrieved 18 November 2013.
  14. ↑ "Winter Fuel Payment". GOV.UK. Retrieved 10 February 2021.
  15. ↑ "The Social Fund Winter Fuel Payment Regulations 2000", legislation.gov.uk , The National Archives, 13 March 2000, SI 2000/729, retrieved 28 June 2020
  16. ↑ Northern Ireland Assembly. The Social Fund Winter Fuel Payment Regulations (Northern Ireland) 2000 as amended (see also as made ), from legislation.gov.uk .
  17. 1 2 Brindle, David (3 January 2013). "Means test winter fuel cash for pensioners to fund care, says Lib Dem". The Guardian. Retrieved 3 July 2015.
  18. 1 2 Burstow, Paul (3 January 2013). "Let's end this old age care lottery". The Guardian. Retrieved 10 February 2021.
  19. ↑ "Heating cost help". www.gov.scot. Retrieved 4 September 2024.
  20. ↑ "UK Government decision ends universal fuel payments". www.gov.scot. Retrieved 4 September 2024.


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