DWP warning as pensioners on some benefits ‘to lose £600’ | Personal Finance | Finance
Pensioners claiming disability-related benefits are poised to lose up to £600 before the year’s end.
Those over State Pension age receiving Personal Independence Payment, Disability Living Allowance, Attendance Allowance and Carer’s Allowance, which aren’t means-tested, will be left without the Winter Fuel Payment.
State Pension recipients will also no longer qualify. In an effort to direct the annual fuel payment towards those with the lowest incomes, it is now limited to households receiving any of five means-tested benefits.
These include Pension Credit, Universal Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance and Income Support.
It’s crucial to highlight that while all of these except Pension Credit are not available to people over State Pension age, if you are in a household where one person is of State Pension age and the other isn’t, the younger partner may be receiving one of those other benefits such as Universal Credit, which would be done as a joint claim taking all household income into account.
The Government is now striving to increase the uptake of Pension Credit, as it is estimated that 880,000 people are missing out despite being eligible, in order to enhance the number who receive the Winter Fuel Payment under the new regulations.
The Winter Fuel Payment, typically ranging from £100 to £300 depending on age and circumstances, was boosted over the past two years by a ‘pensioner cost of living payment’ of up to £300, taking the total to a maximum of £600, reports Birmingham Live.
However, with the removal of the £300 cost of living top-up that had been added in 2022 and 2023 and new restrictions on who receives the standard £300 amount, many households will find themselves £600 worse off this winter as bills are set to rise under the new Ofgem price cap.
Most payments are made automatically in November or December. Those eligible for the newly-restricted scheme should receive a letter detailing how much they’ll receive and into which bank account it will be paid.
If you believe you qualify but don’t receive a letter or the money has not been paid in by January 29, 2025, you will need to contact the Winter Fuel Payment Centre on 0800 731 0160.
Under changes announced by Rachel Reeves, anyone receiving the following benefits – and NOT any of the eligible means-tested benefits – will no longer qualify for the Winter Fuel Payment from this year onwards.
The 9 benefits that no longer qualify for Winter Fuel Payment
These are the benefits that are no longer eligible for the Winter Fuel Payment. A policy shift will restrict the support and see the number of older people receiving the payment fall from 11.4 million to 1.5 million – meaning just under 10 million would lose out on the cash. The move will save about £1.5 billion.
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Attendance Allowance
- State Pension
- War Pensions Scheme
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
This is just the first in a series of expected welfare reforms under Labour’s stewardship. Chancellor Rachel Reeves has signalled tough choices ahead, stating in anticipation of Labour’s initial Budget on October 30: “involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax.”
She levelled criticism at the previous Conservative government for creating a staggering £22 billion deficit in the national budget, necessitating severe corrective measures.
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