Winter Fuel Payment cuts have ‘positive consequences’ as pensioners ‘split’ on decision.l
New DWP Winter Fuel Payment criteria may have some positives for Brits
The experts explained how the controversial move could potentially make the benefit more ‘fair’ (Image: GETTY)
Experts have found that nearly half of pensioners could be backing Rachel Reeves’ controversial alterations to Winter Fuel Payment eligibility, with Which? Principal Researcher Paul Davies citing supportive older individuals amidst the heated national debate.
Speaking on the Which? Money Podcast, Davies pointed out that behind the scenes, this is far from a new topic: “It’s one we’ve been tracking for a number of years.”
Opening up about the recently collected opinions, he shared: “We asked people what they felt about their winter fuel payment a few months ago, 49% said it should be kept for everyone, and 46% said it should be means-tested.
“Pensioners are split down the middle. A lot of pensioners understand that it’s unfair that everyone gets it.”
The old rules meant any pensioner over the state pension age who was in the UK during a set week could get a £200 or £300 seasonal boost, impacting over 11 million retirees regardless of their wealth.
Paul disclosed: “We’ve spoken to people who say they use it to give money to their grandchildren at Christmas or towards their next holiday, a lot of people give it to charity. It feels like the system hasn’t been quite right.”
The new rules mean that individuals now need to be claiming a qualifying benefit to get Winter Fuel Payments, aiming to prevent these DWP funds from going to those who don’t really need help with their next vacation. Yet, the expert conceded: “Whether the change is exactly spot on will be seen.”
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With the recent changes, there’s been a rush of pensioners applying for benefits such as Pension Credit to keep their eligibility.
The expert observed: “One of the positive consequences of the change is more people applying for Pension Credit. It’s a positive unintended consequence.”
Pension Credit, often not claimed enough, left many pensioner households in financial hardship when they were actually entitled to this support. Following the Chancellor’s announcement on Winter Fuel Payments, the DWP saw a 152% surge in Pension Credit applications compared to the eight weeks prior.
