What are the Changes to the Winter Fuel Allowance and How Can You Ensure a Warm Home This Winter?
With the latest budget announcement from the UK government, pensioners may be facing big changes to their Winter Fuel Allowance. From winter 2024/2025, this vital support will be available only to households receiving Pension Credit or other means-tested benefits. Here’s what this means for you or your loved ones and practical steps to ensure a warm, safe home this winter.
What is the Winter Fuel Allowance?
The Winter Fuel Allowance is an annual, tax-free payment designed to help older people afford heating during the colder months. Traditionally, it has been a universal benefit for those of State Pension age, providing:
- £200 for households where the oldest person is under 80.
- £300 for households where someone is aged 80 or older.
In recent years, additional cost-of-living payments of £300 were included. However, these extra payments and universal eligibility won’t be available from winter 2024/2025 under new government measures.
What’s Changing?
All of these announcements can seem fairly confusing, so we’ve broken down the new winter fuel allowance changes to guide you through.
Means-Tested Eligibility
Only pensioners receiving Pension Credit or certain other means-tested benefits will qualify for the Winter Fuel Payment. This will significantly reduce the number of recipients from 7.6 million households to an estimated 1.3 million in England and Wales.
Cost Savings
The government anticipates saving £1.3 billion in 2024/2025 and £1.5 billion in subsequent years, redirecting funds to address public spending pressures.
Applying for Pension Credit
The worry with these changes is that it’ll leave many pensioners, especially those just above the means-tested benefit threshold, struggling with rising energy costs. However, many people who’re eligible for pension credit and aren’t claiming it will be missing out.
In that case, it’s important that either you, a carer or a loved one apply for Pension Credit. As well as support with weekly income, this credit can give older, retired individuals automatic winter fuel payments , cold weather payments (£25 during periods of severe cold), and the Warm Home Discount (reducing electricity bills by up to £150).
The government is also urging pensioners to apply before the December 2024 deadline to qualify for backdated payments.
Additional Support
Many councils offer discretionary funds to assist with heating costs, and charities such as Age UK provide valuable advice and financial support to those in need.
Additionally, reviewing energy tariffs or contacting suppliers about fixed-rate plans can help manage your energy expenses more effectively.
How can Abbots Care Support?
Although the winter fuel allowance changes can seem slightly daunting, and it is indeed likely to affect lower-income pensioners this winter, support is out there.
Our fantastic care team at Abbots Care can help elderly people to apply for pension credit. It’s a fairly long process, so we can be there to help guide the people in our care.
To find out more about how we can help, or speak to one of our advisors about what care is needed for you or your loved ones, please read about our care services or call us on 0330 094 5511.
