Nantwich MP voices concerns over threshold for eligibility to Winter Fuel Payment
By Ellie Hammonds
29th Oct 2024 | Local News
The MP for Crewe and Nantwich has admitted concerns the cut-off for Pension Credit and subsequent access to the Winter Fuel Payment leaves too many without support.
Connor Naismith has sponsored an Early-Day Motion in Parliament which hopes to increase the threshold for which someone can receive Pension Credit (PC), and consequently the Winter Fuel Payment (WFP).
Rachel Reeves announced as of 16 September 2024, households in England and Wales would no longer be entitled to the WFP unless they receive PC or other means-tested benefits - up until this point all those above the state pension age were eligible for the WFP benefit.
Mr Naismith told Nub News: "I am concerned that the cut-off for Pension Credit is too low, which may adversely affect people.
"The initial policy was not meant to."
National Energy Action chief executive, Adam Scorer, said: "The gap in support for vulnerable households who are not on means-tested benefits has grown.
"The government says it can only stretch the financial elastic so far, but they are cutting off support from those who have zero flexibility in their own budget, with no choice other than debt or going cold.
"Whether or not wealthy pensioners should receive help with their energy bill, the decision to restrict the Winter Fuel Payment has put more vulnerable pensioners at risk."
The recent policy changes have triggered apprehension and charities such as Age UK are doing what they can to offer support.
Age UK Nantwich manager, Kathryn Dingle, said: "We had one gentleman come into the shop, he was distraught and upset, he said 'I don't know where to turn, I don't know how I'm going to survive this year.'
"I can just imagine this poor old man sat there, with layers and layers on, not being able to afford his gas or electricity.
"Heat the person not the home, that's disgusting, it's so wrong."
There is concern that the eligibility of WFP being based on receiving means-tested benefits creates a 'cliff-edge,' as those who just miss out on benefits lose support entirely.
Policy in Practice estimate around 130,000 older people who are not eligible for PC, have an income less than £500 a year above the threshold for PC.
This means people in this group could be worse off than those who have a lower income, but qualify for PC and therefore WFP, Policy in Practice has said.
There is the additional issue that the Department for Work and Pensions (DWP) has estimated around 880,000 households eligible for PC do not claim it, meaning since the WFP cut, they will also completely lose support.
The government estimates around 100,000 more people may be encouraged to claim PC through a 'Pension Credit awareness drive.'
However, a further three quarters of a million pensioners who are eligible are still not likely to claim for the benefit, DWP's analysis has confirmed.
Dingle said older people are not internet savvy, so they are not informed about or made aware of PC.
The cuts to WFP are in response to the government's inheritance of what Sir Keir Starmer has described as a "£22 billion black hole" in public finances.
The UK government's figures showed 83 per cent of people over 80 are set to lose the payment, with that figure rising to 90 per cent of those aged between 66 and 79.
READ MORE: Energy saving specialists supporting Nantwich businesses to cut energy bills by up to 50 per cent.
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