20 November 2024
FOI data reveals DWP spent £250,000 on pension credit advertising
since winter fuel payment changes
Thursday 21 November marks one month until the final deadline for pensioners to apply for backdated pension credit to receive this year’s winter fuel payment. Pension provider and financial adviser, Quilter, is urging those who have not yet done so to check their eligibility and apply by 21 December.
In July, the Chancellor announced that the winter fuel payment would be made only to those on low incomes who received certain benefits such as pension credit as of this year. New Freedom of Information (FOI) data from the Department for Work and Pensions (DWP), gathered by Quilter, reveals that since the Chancellor’s announcement, the DWP has spent a total of just £253,954.92 on advertising spend related to pension credit in a bid to increase take up.
Unite previously estimated that while the cuts to the winter fuel payment would save the government approximately £1.4 billion a year, if all pensioners entitled to pension credit but not yet receiving it were to claim, it would cost the government £2.2 billion a year. This highlights just how many of the UK’s poorest pensioners are not only missing out on valuable pension credit payments but who will also face the loss of the winter fuel payment if they do not apply in time.
It is vital that anyone who thinks they may be eligible, or anyone with relatives or loved ones over the state pension age who they believe may be entitled, checks the eligibility criteria and ensures their application is submitted as soon as possible.
Those who are eligible would not only benefit by regaining the winter fuel payment, worth either £200 or £300 depending on age, but they would also receive pension credit to top up their income.
Pension credit is made up of two parts. The first is a guarantee credit, which tops up your weekly income to the minimum guaranteed level: currently £218.15 if you are single or £332.95 if you have a partner. The second is a savings credit, which provides a small top up for people who reached state pension age before 6 April 2016 and have a modest amount of income or savings.
Separate data obtained via FOI by Quilter from the DWP earlier this year revealed that from the 2019/20 tax year up to 31st July 2024, the DWP received a total of 848,973 pension credit claims, of which 572,565 were awarded. Therefore, around two-thirds (67%) of claims were successful over this period.
In order to successfully get pension credit in the UK, you need to meet the following criteria:
- You must have reached State Pension age, which is currently 66 or older.
- You must live in the UK.
- Your weekly income should be below £218.15 if you’re single, or £332.95 if you’re in a couple. If you have a disability or caring responsibilities, you might still qualify with a slightly higher income.
- If you have savings and investments over £10,000, each £500 above this amount counts as £1 in additional income per week when calculating eligibility. For example, if you have £11,000 in savings, this counts as £2 income a week.
If you receive pension credit, you may also be eligible for several additional benefits. These include a free TV licence if you’re 75 or older, which covers everyone living at your address. You might also get help with your rent through housing benefit, a discount on your council tax, and other benefits that can ease financial pressure.
Jon Greer, head of retirement policy at Quilter, said:
"With the last date for making a backdated claim for pension credit to receive the winter fuel payment now just a month away, it is vitally important that pensioners on low incomes check their eligibility.
“While it is understandable that the government would not want to undo the savings generated by cutting the winter fuel payment, it is surprising that just £250,000 has been spent on its pension credit advertising campaign given the risks of not reaching the people who need it most. That equates to 0.018% of the £1.4 billion it has saved by cutting the winter fuel payment.
“Pension credit guarantees a weekly income of £218.15 if you’re single or £332.95 if you have a partner. It also unlocks a variety of other benefits that can help with housing costs, council tax, and heating bills.
"If you are unsure about your eligibility, an online pension credit calculator can provide an estimate of potential benefits. Applying is simple and can be done online, by printing and completing a paper form, or by calling 0800 99 1234."
