Winter Fuel Payment change will impact one million households

New analysis by Policy in Practice has shown that one million households will miss out due to the changes announced to the Winter Fuel Payment.

The data also showed that over 850,000 older people are eligible for but not claiming Pension Credit whilst another estimated 130,000 older people miss out because they are just £500 over the income threshold to claim Pension Credit. They could be better off by having lower income and claiming Pension Credit and the Winter Fuel Payment.

Social policy data analytics company Policy in Practice uses administrative data to help local authorities find residents who need support, identify unclaimed benefits, and better direct local discretionary support, such as the £1 billion Household Support Fund.

The analysis also found that local authority-led take-up campaigns can narrow the take-up gap. A recent pan-London takeup campaign saw over 2,300 households take up Pension Credit who did not know they were eligible.

Locally led takeup campaigns were found to be more than twice as effective as national campaigns. Their project is expanding, operating across over sixty councils this year to drive takeup of Attendance Allowance, Free School Meals, Healthy Start and social tariffs.

Founder of Policy in Practice, Deven Ghelani said “Taking the Winter Fuel Payment from better off pensioners is one of the few reasonable ways to save money in social security, particularly as they benefit from the triple lock. However, there really is no excuse for the shockingly low levels of Pension Credit take up as many older people continue to struggle with the cost of living.

“The Secretary of State should prioritise simplicity in the benefit system and promote proactive support for people. The DWP could start by sharing data with local authorities and widening legislation to allow for automated take up campaigns for benefits such as Pension Credit. If Universal Credit data were shared more widely, we could boost incomes while lowering administration costs.”