Liz Kendall urged to make major changes to Winter Fuel Payments rule

The Social Security Advisory Committee has put forth their recommendationsfor changes to the Winter Fuel Payment after Labour shifted the eligibility criteriafor the second time since taking power last year. The report criticised the new rulesfor their "inconsistent treatment of vulnerable groups".

To be eligible for the Winter Fuel Payment, you must be over the state pension age and earning £35,000 or less annually. The committee has suggested that the Secretary of State for Work and Pensions, Liz Kendall, consider making people receiving certain benefits exempt from the income threshold rule.

The report highlighted: "The Government automatically exempts Pension Credit recipients from the income threshold, recognising their financial vulnerability.

"However, it does not extend similar automatic protection to other vulnerable groups receiving means-tested benefits, such as pension-age Housing Benefit, or disability benefits such as Personal Independence Payment, Disability Living Allowance or Attendance Allowance.

"These pensioners often face higher energy costs due to low quality rental housing or health conditions requiring increased heating, yet they are subject to the same £35,000 taxable income threshold as others.

"If the Government can automatically identify and protect Pension Credit recipients, it is unclear why similar mechanisms cannot be extended to other social security benefit recipients, such as those on Attendance Allowance, Personal Independence Payment, Disability Living Allowance or pension-age Housing Benefit.

"We recommend that further consideration be given to whether additional benefits, for example Attendance Allowance (and comparable disability benefits) and pension-age Housing Benefit, should be added to the list of relevant benefits which secures access to a Winter Fuel Payment."

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With less than three months before the benefit gets distributed, the committee said it "would not be right to cause any possible delay in those payments reaching pensioners who may be relying on them". Rather than conducting an exhaustive examination of every element, the chair outlined key areas of concern that the committee would have explored more thoroughly given sufficient time.

The report delivered eight recommendations overall and highlighted that the government's existing strategy "falls short" regarding fairness, simplicity and providing targeted assistance. For this year's payments to proceed without issues, the committee stated there would need to be "enhanced communications" to prevent worry and bewilderment amongst people depending on the support.

Winter Fuel Payments, typically dispatched every November and December to aid vulnerable households with the increased energy costs of winter, have undergone significant changes. Previously, anyone who had reached state pension age and resided in the UK was entitled to the £200 or £300 payment.

However, last year saw Labour drastically tighten the eligibility criteria, necessitating that Brits be in receipt of a qualifying means-tested benefit to be eligible in England and Wales. This resulted in only approximately 1.5 million people receiving the support last winter, a stark contrast to the 8.5 million beneficiaries the previous year, as per the IFS.

In June, the Prime Minister and Chancellor unveiled new criteria, set to make an additional eight million pensioners eligible this coming winter season. Those with an income exceeding £35,000, who are not otherwise eligible for the benefit, will return the payment to HMRC either through a change in their tax code or on their Self Assessment for the 2025/2026 tax year.