Opinion: the Government has inadvertently achieved a highly-successful Pension Credit awareness drive

The silver lining to the Winter Fuel Allowance cut is that many more of the worst-off pensioners will get additional help this Winter compared to previous years, writes Piper Terrett.

For years, the Government – and we at loveMONEY – have been trying to encourage more pensioners to check if they are eligible for Pension Credit and, if so, sign up.

There has long been a poor take up for this vital benefit, which provides additional help for pensioners on low incomes, despite it being worth nearly £4,000 a year.

Now, it seems that the new Government has inadvertently managed to come up with a highly successful campaign to finally get more of those eligible signed up.

By axing the Winter Fuel Allowance for an estimated 10 million pensioners, Chancellor Rachel Reeves has encouraged more pensioners to check if they are eligible for Pension Credit.

This is because from now on, only those who receive Pension Credit will be able to get the Winter Fuel Allowance.

Claims for Pension Credit soaring

Official figures suggest claims for Pension Credit are up by 152% in the past two months since Government said it was cutting the Winter Fuel Payment, with an additional 45,000 applications.

What’s more, it’s thought that there could be another 158,000 claims by the deadline to apply in December.

In fact, according to research by consultancy Policy in Practice, which works with local councils to inform pensioners about the financial support available to them, the Government is unlikely to save anywhere near as much money from the move as it previously anticipated, given that the total costs could be as much as £700 million more than forecast.

This is because when you claim Pension Credit you are entitled to benefits worth up to £75 a week – that’s £3,900 a year and well worth claiming.

Pension Credit: what you can claim for

Pension Credit gives you cash to help with your living costs if you’re over State Pension age and on a low income. The benefit is separate from your State Pension. 

You can receive it even if you have other income, savings or own your own property.

If you are eligible, you can also receive Housing Benefit if you are renting or support for mortgage interest if you have a mortgage, help with ground rent or service charges, a discount on your council tax, a free TV licence if you are aged 75 or over.

Plus you can even get help with the cost of new glasses, NHS dentistry and transport to hospital appointments.

You can also get support with your heating costs through the Warm Home Discount Scheme and a discount on the Royal Mail redirection service if you’re moving home.

That’s in addition to the Winter Fuel Allowance. So it’s well worth checking if you’re eligible – especially now the new Ofgem energy price cap has kicked in and prices are rising.

Now more than ever it’s important to make sure you’re getting what you’re entitled to.

Unexpected silver lining

The scrapping of the Winter Fuel Allowance for 10 million pensioners is a heavy blow for those already struggling to make ends meet.

But, strangely enough, the unintentional silver lining here is that many more vulnerable pensioners who are eligible for Pension Credit are signing up in droves and will hopefully be better off this winter and for years to come.

We would urge all pensioners to make the effort and claim what is rightfully theirs.

Find out if you’re eligible for Pension Credit here: Pension Credit: Overview - GOV.UK (www.gov.uk)