Category: Press Releases

The press release issued by the Department for Work and Pensions on 2 September 2024.

Millions of vulnerable people to receive help this winter as the Work and Pensions Secretary extends the Household Support Fund.

• £421 million boost for local authorities in England to help people most in need with the cost of their energy, food and water, with £79 million for devolved administrations
• Immediate support comes alongside the government’s growth mission to rebuild Britain and make every part of the country better off

Vulnerable households will receive support for the cost of essentials this winter, as the Work and Pensions Secretary Liz Kendall announces an extension to the Household Support Fund for the next six months.

The £421m extension gives certainty to Local Authorities across England over the winter months – up until April 2025 – as they work to help those struggling with the cost of energy, food, and water.

Pensioners and others struggling to heat their homes or afford other essential items over the colder months should contact their local council to see what support may be available to them. Details on the latest scheme for local authorities and councils will be communicated in the coming weeks.

Many councils also use the Fund beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.

An estimated £79 million will also be given to Devolved Administrations via the Barnett formula as the government leaves no stone unturned in ensuring every person – in every part of the country – has the foundations they need to be financially secure. Administrations in Scotland, Wales and Northern Ireland can choose how to allocate this additional funding, as the UK government continues to work closely with them to help support vulnerable people.

Given the dire economic inheritance, we had to take difficult decisions to put our public finances on a sustainable footing as we tackle the £22 billion black hole.

1.3 million more people have fallen into poverty since 2010/11, with living standards falling by the largest year-on-year drop since records began in 2022/23. For over a decade people have also been denied the security and dignity that good work affords with more than a near record 2.8 million people out of work due to sickness.

As we continue our work to deliver growth, make work pay and develop our child poverty strategy in the long term, the extension of the Fund prevents councils and vulnerable households experiencing an immediate cliff edge of support with a tough winter ahead.

Chancellor of the Exchequer, Rachel Reeves MP, said:

The £22 billion blackhole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy.

But extending the Household Support Fund is the right thing to do – provide targeted support for those who need it most as we head into the winter months.

Secretary of State for Work and Pensions, Liz Kendall MP, said:

We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living.

The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.

At the same time, we are taking action to fix the foundations of our country through our plans to grow the economy, make work pay, and Get Britain Working again.

The government is exploring options around how best to provide sustainable support to vulnerable households in the longer term while the ministerial Child Poverty Taskforce develops an ambitious strategy to tackle the root causes of poverty, and the Get Britain Working White Paper, to be set out in the Autumn, will develop measures to reduce inactivity and help people to find better paid and more secure jobs.

By growing the economy and unlocking investment through the National Wealth Fund; launching Great British Energy to drive home-grown clean energy and lower bills; making work pay and developing a new Child Poverty Strategy to give children the best start in life – the Government is looking at all levers available to unlock the potential of millions across the country and give them the platform they need to thrive.

Additional Information

• The Household Support Fund is administered by the Department for Work and Pensions and delivered by Local Authorities in England. It can be used to help vulnerable residents with energy and water bills, food and other essential items.
• People can find their council here.
• Barnett consequentials for Devolved Governments will be finalised in due course.
• In 2022/23, there were 1.3 million more people in relative poverty after housing costs than in 2010/11.
• In 2022/23, living standards, as measured by RHDI per capita, fell by 2.1 per cent, the largest year-on-year drop since records began in the 1950s.

The press release issued by the Department for Work and Pensions on 1 September 2024.

The Department for Work and Pensions (DWP) to launch Pension Credit Week of Action to boost take-up of vital benefit.

• Joining forces with charities, broadcasters and a range of partners, the campaign will encourage pensioners to check their eligibility and apply
• Up to 880,000 pensioners could be missing out on this cash boost worth on average up to £3,900 per year

Hundreds of thousands of pensioners are being urged to apply for a benefit that could be worth on average £3,900 per year as the Department for Work and Pensions (DWP) is launching a campaign to increase Pension Credit take-up on Monday 2 September.

With as many as 880,000 pensioners missing out, the Pension Credit Week of Action aims to spread awareness and increase claims for Pension Credit, which from this year will also automatically passport eligible pensioners to receive the Winter Fuel Payment.

Joining forces with charities, broadcasters, Local Authorities, and a range of partners, the campaign will tackle myths that may prevent people applying, for instance having a small private pension, savings or owning their own home.

Families, friends and neighbours are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply. 21 December is the last possible date to make a successful backdated claim in order to receive the Winter Fuel Payment.

While around 1.4 million pensioners are already receiving Pension Credit, up to an estimated 880,000 households are eligible for the support but are not claiming it.

Chancellor, Rachel Reeves, said:

The £22 billion blackhole inherited from the previous governments means we are having to take tough decisions now to fix the foundations of our economy – including making the Winter Fuel Payments available to those most at need.

1.3 million pensioners are already going to get help with fuel bills this year because they’re claiming pension credit – but thousands more are eligible. So, if you know someone who could get pension credit and help with their fuel bills, now is the time to help them apply for pension credit.

Work and Pensions Secretary, Liz Kendall said:

Thousands of pensioners are missing out on Pension Credit worth on average £3,900 per year. That needs to change.

It’s easier than ever to check if you are eligible, including with our online calculator, and if your circumstances have changed since the last time you looked – I urge you to check again.

Friends, families and neighbours can also encourage their loved ones to apply, so that they are not missing out on this vital benefit.

Energy Secretary Ed Miliband said:

The legacy of failure on energy policy we have inherited means energy prices are set to rise in autumn. We must ensure that pensioners in the greatest need get access to help with rising bills.

We will do everything in our power to increase take up of Pension Credit to the 880,000 households who are yet to claim – opening the door to other vital support such as the Winter Fuel Payment.

The government will also continue our mission to deliver clean power by 2030, helping to finally give families the energy security they deserve and our country the energy independence we need.

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible for this support which is worth £3,900 a year on average, using DWP’s online calculator.

People with a severe disability, carers and those who are responsible for a child or young person who lives with them could get more. Pension Credit can also include extra amounts for certain housing costs, such as ground rent or service charges.

This work is part of a wider plan to ensure economic stability for pensioners by protecting the Triple Lock and supporting households with their energy bills through the £150 Warm Home Discount and the Warm Homes Plan – upgrading millions of homes this Parliament.

Over the next five years, more than 12 million pensioners could see their State Pension increase by over a thousand pounds as a result of the commitment to the Triple Lock.

Background

• Applications for Pension Credit can be made:
  • On the How to Claim page
  • Over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm)
  • By printing out and filling in a paper application form
  • For more information visit the Pension Credit GOV.UK page.
• The Winter Fuel Payment is worth £300 for households with someone aged 80 or over. Households with someone aged 66-79 will receive £200.
• We will work with Local Authorities to bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible.
• People who have reached State Pension age before September 23, 2024 and are in receipt of Pension Credit, Income Support, Income based JSA, Income related ESA, Universal Credit, Child Tax Credit or Working Tax Credit, will be entitled to a Winter Fuel Payment – subject to eligibility conditions.
• The regulations to means-test the Winter Fuel Payment will be laid on 22 August 2024. The qualifying week in 2024 for Winter Fuel Payments will be from 16 to 22 September.
• Pensioners need to be entitled to Pension Credit for at least one day in week September 16 to 22 to be eligible for a Winter Fuel Payment for this winter.
• 21 December is the last date for backdating a claim for Pension Credit to 22 September, assuming the claimant met the Pension Credit entitlement conditions throughout the previous three months.
• Anyone who is entitled to Pension Credit for at least one day of the Winter Fuel Payment qualifying week will have automatic entitlement to Winter Fuel Payment. There are some exceptions which are detailed on GOV.UK: https://www.gov.uk/winter-fuel-payment/eligibility
• People do not have to do anything extra to backdate their claim. If they make their application online, they will automatically be asked if they would like to backdate it. If they make their application over the phone the advisor will talk them through this.
• Around 1.3 million households in England and Wales will continue to receive Winter Fuel Payments due to some other pensioner households being eligible and expected extra Pension Credit take up due to this reform.

Pension Credit recipients by region (as of February 2024):

North East	73,883
North West	175,179
Yorkshire and The Humber	118,633
East Midlands	95,767
West Midlands	130,427
East of England	110,017
London	190,496
South East	147,763
South West	111,251
Wales	80,927
Scotland	125,136

Further Information

Supportive statements:

• Martin Lewis, founder of MoneySavingExpert, said:

It’s a national tragedy that nearly a million eligible low-income pensioners who’ve paid into the system for years are still missing out on the crucial Pension Credit financial lifeline – a better name for it would be the State Pension Top Up.

So whatever your age, take a second to understand how it works, so we can all ensure the message is spread to every nook and granny (and grandpas too).  Especially as the government has just severed Winter Fuel Benefits eligibility for millions, yet if you claim Pension Credit you’ll still get it.

While for most single pensioners, you need total weekly income, including from savings, under around £218 (pensioner couples under £333) to be very likely to qualify, my rule of thumb is spend a few minutes to check even with weekly income up to £235 (pensioner couples £350) as there’s still a chance some may be eligible.

Pension Credit can pay out £1,000s a year, but even if it’s only going to pay you thruppence, still claim it! As once you get it, it’s a gateway benefit that opens the door to other entitlements – including council tax reductions, free TV licences (if age over 75) dental and optical support and more.

• Sir Steve Webb, Partner at pension consultants LCP and former Pensions Minister, said:

I would encourage anyone on a tight budget to consider an application for Pension Credit.

It can be claimed over the phone and could be the gateway to a range of valuable additional benefits, including reductions in energy bills, extra support when the temperature drops, free TV licences for those aged 75+ and continued receipt of the Winter Fuel Payment.

Even if you are not sure if you will be entitled, it is worth putting in a claim, especially for those who are disabled or carers and might be entitled to additional amounts.

• Juliet Tizzard, Director of External Relations at Parkinson’s UK said:

Parkinson’s UK is pleased to support the DWP in raising awareness of Pension Credit,  which is a vital resource for older people on low incomes living with conditions like Parkinson’s.

We know that very few people with Parkinson’s and their carers who are entitled to Pension credit, actually claim it. Our recent survey found that only 6% of eligible respondents received Pension Credit, leaving many without access to additional entitlements that could ease the financial strain of living with Parkinson’s.

With the Winter Fuel Payment soon only being granted to those receiving Pension Credit, it’s more important than ever for everyone of pension age and above to check whether they are eligible to claim it.

This Week of Action is crucial to raise awareness of Pension Credit and we urge everyone of pension age to check their eligibility to ensure they can access the support they are entitled to.

• Sarah Pennells, Consumer Finance Specialist at mutual pensions provider, Royal London, said:

Pension Credit is a valuable benefit for anyone over State Pension age who is on a low income. But with an estimated 880,000 people missing out, it’s important that anyone who thinks they may qualify for it, or anyone who thinks a family member may qualify, puts in a claim.

Pension Credit not only provides additional tax-free income, but, because it’s a ‘gateway’ benefit, means that people who are eligible may also qualify for help with housing costs such as rent and council tax, as well as energy bills through the Winter Fuel Payment and Cold Weather Payment.

Our research shows that one in five people over State Pension age are living on the State Pension alone, with many thousands not entitled to the full amount for a variety of reasons. Pension Credit could make a big difference to their standard of living in retirement.

If you have a family member or friend over State Pension age, they could be missing out on tax-free payments worth thousands of pounds a year.

• Nigel Peaple, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association (PLSA), said:

Pension Credit can provide vital support to low-income pensioner households, but many people don’t claim it.

If you think you, or someone you know, might be eligible, call the Pension Credit claim line, write to the Pension Service or put in an application on the Government website. Help spread the word; it could make a world of difference to someone.

• A British Gas spokesperson said:

Pension Credit Week of Action is the perfect opportunity to remind our customers of the vital support available to them. We are committed to ensuring pensioners are informed about their eligibility for Pension Credit and the additional help it provides. Our ‘You Pay: We Pay’ initiative further supports this by doubling contributions to help manage energy costs. By reaching out directly to customers who may be struggling, offering access to grants through the British Gas Energy Trust, and offering face-to-face advice through our Post Office partnership, we aim to make it easier for pensioners in need to access essential support.

• Jackie Spencer, Head of Money and Pensions Policy at the Money and Pensions Service, said:

One in three people who are entitled to Pension Credit don’t claim and, if you’re one of them, you could be missing out on extra income per year.

It’s important to find out if you’re eligible for Pension Credit as it can not only help with your day-to-day living costs, but it can also entitle you to other grants, benefits and discounts. For example, households claiming Pension Credit can get a Winter Fuel Payment and Housing Benefit.

• Jonathan Bland, Head Geek at Pension Geeks and founder of the Pension Awareness Campaign, said:

With the Pension Season upon us, there is never a more fitting time to check whether or not you could be eligible for Pension Credit.

You might be surprised – if you own a home, or have savings – you could still be entitled to the payment. It can also open the door to additional help with housing costs and heating bills, etc. Hundreds of thousands of people of people are missing out, so I’d urge everyone to take a few moments to check.

• Dr Suzy Morrissey FCA, Deputy Director, Pensions Policy Institute, said:

The PPI is excited to see that start of the Pension Credit Week of Action. This is a great initiative to help people become better informed about pension credit and their retirement income.  It is important that people receive all their entitlements and this Week of Action will help raise awareness.

• Rachel Fletcher, Director of Economics and Regulation at Octopus Energy, said:

We know many people are worried about the impact of rising fossil fuel prices this winter. Support is available, but often goes unnoticed – for example, 1 in 4 eligible pensioners currently don’t claim Pension Credit.

Companies can help to make sure every pensioner gets the assistance they need. We are not only offering our own Winter Fuel Payments to pensioners this winter, but also training staff to spot when customers are missing out and help them get the benefits they deserve.

• Pete Glancy, Head of Pensions Policy, Scottish Widows, said:

Scottish Widows’ latest Retirement Report told us that the State Pension plays a vital role in meeting day-to-day costs for 75% of current retirees – and that future retirees are worried how they would get by if it wasn’t there.  That underlines how important it is that people understand what they are entitled too – and that pension credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. It’s separate from the State Pension and you can get it even if you have other income, savings or own your own home.

We welcome the Government’s efforts to draw attention to this important benefit.