The government's announcement on 29 July 2024 that the Winter Fuel Payment would be means-tested for the first time drove a 145% rise in pension credit applications, according to Which?1. The consumer body reported on 7 December 2024 that 150,000 claims were made in the 16 weeks following the announcement, compared with the previous 16 weeks1.
Since April 2024 the Department for Work and Pensions has received 215,200 pension credit claims, of which 161,800 have been processed1. Only 81,000 were approved, meaning nearly half of processed claims were unsuccessful, and 53,400 remain awaiting review1. Pension credit provides at least £218.15 a week for single pensioners and £332.95 for couples1. About 1.4 million pensioners receive it, but an estimated 880,000 eligible households are missing out1.
Under the change, eligibility for the Winter Fuel Payment now depends on receiving pension credit or another qualifying means-tested benefit1. The payment is worth £200 or £300, depending on age, and is usually paid between November and December1. Which? reported that a pension credit claim must be made before 21 December to be backdated, which would make the claimant eligible for this year's payment1.
"Applications surged following the government's Winter Fuel Payment announcement on 29 July 2024"
Which? listed five other support routes for heating costs1:
| Scheme | Support | Notes |
|---|---|---|
| Warm Home Discount | £150 off electricity bills | England and Wales: guarantee credit element of pension credit, or low income with high energy costs. Scotland operates differently; not available in Northern Ireland1 |
| Cold Weather Payment | £25 per seven-day period below 0°C | England, Wales and Northern Ireland; paid between 1 November and 31 March1 |
| Winter Heating Payment | £58.75 this winter | Scotland only; paid automatically regardless of temperature1 |
| Energy Company Obligation | Insulation or replacement boilers, potentially full cost | Great Britain; homeowners and private tenants on certain benefits1 |
| Boiler Upgrade Scheme | £7,500 off heat pumps, £5,000 off biomass boilers | England and Wales; valid Energy Performance Certificate required1 |
Why it matters for households
The Winter Fuel Payment was previously paid to pensioner households regardless of income. Under the change, the payment now follows a pension credit award, so a household's access to it depends on a separate claim being made and approved1. Which? reported that only about half of processed pension credit claims were approved, and that a backlog of 53,400 claims was outstanding1.
Pension credit also acts as a gateway benefit, unlocking help with housing costs such as rent and council tax as well as energy bills1. For a household that misses out, the effect is not limited to the £200 or £300 payment itself. The Warm Home Discount and Winter Fuel Payment are separate schemes with different eligibility rules, and the discount is not available in Northern Ireland1.
The other schemes listed operate on different bases: the Cold Weather Payment depends on sustained low temperatures, while the Winter Heating Payment in Scotland is paid automatically regardless of temperature1. The Energy Company Obligation and Boiler Upgrade Scheme fund physical measures rather than bill support, and the Boiler Upgrade Scheme requires a registered installer to apply on the householder's behalf1.
What happens next
Which? reported that a pension credit claim must be made before 21 December to ensure it can be backdated, making the claimant eligible for this year's Winter Fuel Payment1. Payments are typically made between November and December1. Winter Heating Payment recipients in Scotland receive a letter from Social Security Scotland before payment, made automatically between December and February1. Cold Weather Payments are made automatically within 14 days of a cold spell1.
Which? also reported that a rejected pension credit applicant can reapply at any time, and can request a free mandatory reconsideration within one month of the decision1. No further government announcement on the means test has been reported.