The Department for Work and Pensions’ independent advisor on social security has asked for "urgent reassurance” that processing delays will not stop eligible pensioners from receiving Winter Fuel Payments this year.
The Social Security Advisory Committee has raised several concerns with the DWP after scrutinising the Winter Fuel Payment cuts which mean that pensioners who do not receive Pension Credit or other means-tested benefits will not receive the payment from this year onwards.
In a letter to the DWP the regulator said it “remains concerned about the capacity of the department to process Pension Credit claims in a timely way” and thus ensure that people can establish entitlement to Winter Fuel Payments and be paid this winter.
In September, the DWP committed to bring in an extra 450 extra staff to process Pension Credit claims. But the SSAC said the officials recruited to this role will need around two months to undertake the appropriate training before managing live caseloads.
The SSAC has asked the DWP for “urgent reassurance that sufficient resources are being put in place to ensure that the average processing time for successful claims will not increase this autumn”.
The committee has also asked the DWP to publish the value of the direct savings expected from reducing eligibility for Winter Fuel Payments as well as the offsetting costs from different levels of additional Pension Credit take-up. It said this would “provide a better explanation of how the costs and savings balance out and enable a clearer assessment of whether the stated policy intent is likely to be achieved”. The government has projected the policy will bring in savings of around £1.4bn per year.
The SSAC also raised concern about the risk to pensioners with disabilities, those on housing benefit, and those in receipt of Child Tax Credit
The DWP has estimated that around 71% of people with a disability (1.6 million people) will lose entitlement to Winter Fuel Payments. The SSAC said it is “essential” that the department ensures those receiving Attendance Allowance, Disability Living Allowance and Personal Independence Payment are sufficiently engaged and aware of the options available to them.
Pensioners on housing benefit could lose out, the committee noted, because this is not included as a benefit that will qualify pensioners for the Winter Fuel Payment. Around 120,000 pensioners who only receive housing benefit might qualify for Pension Credit if they claimed it, according to the SSAC.
The SSAC has asked the DWP to considering bringing forward an urgent amendment to – for this year only – add those in receipt of the full rate of pensioner Housing Benefit to the Winter Fuel Payment. It has also called on the department to “assess the equity” of excluding housing benefit as a qualifying benefit.
For pensioners who receive Child Tax Credits, the watchdog warned that there is a risk some may be financially disadvantaged if they move to Pension Credit too soon. The Child Tax Credit is ending in April 2025. Recipients are being gradually moved over to Universal Credit or Pension Credit but need to wait for a migration notice to do so. Pensioners moving beforehand would lose their right to transitional protection.
The SSAC said the DWP should either speedily move over the 5,000 pensioners in receipt of Child Tax Credit across to Pension Credit, or provide protection for any pensioners who inadvertently find are disadvantaged by moving too soon in response to the department’s campaign to boost Pension Credit take-up.
CSW understands that DWP has not yet responded to the SSAC's recommendations but intends to do so.
A government spokesperson said: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,700 this parliament through our commitment to the Triple Lock.
“Over a million pensioners will still receive the Winter Fuel Payment, and our drive to boost Pension Credit take up has already seen a 152% increase in claims. Many others will also benefit from the £150 Warm Home Discount to help with energy bills over winter, while our extension of the Household Support Fund will help with the cost of food, heating and bills.
“In the longer term we will bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible, so that pensioner households receiving Housing Benefit also receive any Pension Credit to which they are entitled.”