Pension Credit Awards Soar Following Winter Fuel Payment Announcement
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A significant increase in Pension Credit awards has been reported since the Government announced that only those in receipt of this benefit would receive an annual Winter Fuel Payment. According to data from the Department for Work and Pensions (DWP), a 51% increase in Pension Credit claims was recorded, with 57% more awards made than in the previous year.
The surge in awards is a welcome development, as Pension Credit is a vital benefit that provides a top-up to pensioners on the lowest incomes. As Your Money reports, the benefit also gives access to other essential perks, such as a free TV Licence. Jon Greer, head of retirement policy at wealth manager Quilter, described Pension Credit as “perennially underclaimed”. However, he also expressed concerns that the Government’s announcement has created uncertainty, which may hinder progress in getting more people to claim the benefit.
The Government’s decision to limit Winter Fuel Payments to those receiving Pension Credit has led to a substantial increase in claims. Your Money reveals that, on average, those who receive Pension Credit receive a top-up of £4,000 per year. To be eligible for Pension Credit, individuals must meet specific criteria, including reaching the state pension age, living in England, Scotland, or Wales, and having a weekly income below £227.10 if single or £346.60 if in a couple.
Morgan Vine, director of policy and influencing at later life charity Independent Age, welcomed the increase in Pension Credit recipients but emphasised that there is still much work to be done. He stated that over a million people are not receiving the entitlement, and that more needs to be done to raise awareness and encourage eligible individuals to claim. As Your Money advises, those who think they or a family member may be entitled to Pension Credit can check eligibility for free using resources linked on the Government website or seek help from organisations such as Citizens Advice, local councils, and charities.
Eligibility criteria for Pension Credit include:
* Reaching the state pension age (currently 66 or older)
* Living in England, Scotland, or Wales
* Having a weekly income below £227.10 if single or £346.60 if in a couple
* Having savings and investments below £10,000 (or £500 above this amount counts as £1 in additional income per week)
The DWP’s data suggests that the Government’s announcement has had a positive impact on Pension Credit claims. However, experts warn that more needs to be done to ensure that all eligible individuals receive the benefit. As Jon Greer noted, “A lot of progress has been made in getting more people who should be receiving Pension Credit to apply for it, but without clarity on the Winter Fuel Payment, that progress may now stall.”
In conclusion, the recent surge in Pension Credit awards is a positive development, but more work is needed to ensure that all eligible individuals receive the benefit. As Your Money reports, the Government must provide clarity on the Winter Fuel Payment to avoid hindering progress. By raising awareness and encouraging eligible individuals to claim, it is hoped that more people will receive the support they need to live a dignified and secure life in retirement.
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