Money Wellness
Image of someone looking cold. Could £300 winter fuel payments be back on the cards?
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calendar icon25 Sep 2024

Could £300 winter fuel payments be back on the cards?

The Labour leadership faced a setback during the last day of its party conference after losing the vote over plans to cut winter fuel payments to 10m pensioners.

Unite and the Communications Workers Union jointly supported the non-binding motion to reverse cuts to winter fuel payments.

They accused the government of trying to ‘silence’ them after the vote was moved from Monday to the end of the final day of the conference when most ministers had left.

Sharon Graham, general secretary of Unite, expressed her disappointment with the Prime Minister for getting rid of the allowance while leaving wealthy individuals unaffected.

She said: “We are the sixth richest economy in the world, we have the money. Britain needs investment, not austerity mark two. We won’t get any gold badge for shaving peanuts off our debt.

“It’s the wrong decision and it needs to be reversed.”

The unions won the motion by a narrow margin through a show of hands in the conference hall.

What does the vote mean for winter fuel payments?

The vote is non-binding which means that despite losing Keir Starmer could still press ahead with cuts to winter fuel allowance. Chancellor Rachel Reeves said only two days ago that they would not budge on their plans regardless of the vote. But today’s loss does increase the pressure on the government to look again.

What are winter fuel payments?

Winter fuel payments are paid once a year to help older people cover their heating costs during the winter. Anyone born on or before 26 September 1955, could be eligible for a winter fuel Payment of between £100 and £300 depending on their circumstances.

This year, the government plans to only make winter fuel payments to those receiving pension credit.

What is pension credit?

Pension credit is an income-related benefit that tops up pensioners' weekly income if it's below a certain level to help with living costs.

According to the DWP, the average pension credit award is around £3,900. Although it could be worth up to £10,000 for some claimants.

Pension credit is a ‘gateway’ benefit. This means that getting a pension credit award – however small – can also open the door to other support such as housing benefit, a free TV licence, council tax reductions and help with dental treatment, glasses and transport costs for hospital appointments.

How to claim pension credit

According to Policy in Practice, over 850,000 eligible pensioners miss out on pension credit.

You will be eligible for pension credit if your weekly income is less than £218.15 if you live on your own or £332.95 if you have a partner. You may still be eligible even if earn more than this if you have a disability or care for someone.

You can apply online or by calling 0800 731 0469. You can also use our online benefit calculator to see if you will be eligible.

Avatar of Caroline Chell

Caroline Chell

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

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