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Fall in pensioners claiming tax help as charity warns many are missing out

Government support for older people’s budgets is ‘vital’ a charity director has said

Will Durrant
Thursday 15 August 2024 05:12 EDT
‘Many people may be missing out on valuable extra pounds,’ a charity director has warned (Yui Mok/PA)
‘Many people may be missing out on valuable extra pounds,’ a charity director has warned (Yui Mok/PA) (PA Archive)

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Many people may be missing out on “valuable extra pounds”, a charity director has warned, as Government figures showed a drop in the number of pensioners claiming council tax support.

The number of older people who received support with their monthly bill fell by 1.2% across England between summer 2023 and 2024.

The Government unveiled the figures less than three weeks after Chancellor Rachel Reeves said she would introduce means testing for the winter fuel payment, a separate benefit previously open to everyone above state pension age.

Caroline Abrahams, Age UK director, described Government support as “vital” and added “the worst that can happen is they say no” to billpayers who ask authorities for help to manage their budgets.

More than 370,000 people have signed the charity’s petition, calling on the Government to save the winter fuel payment, which was cut “with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners”.

Pensioners in England and Wales were entitled to payments of up to £300 to help with their heating bills during colder months.

New eligibility criteria introduced this year means the money will only be handed to older people who claim certain means-tested benefits, such as Universal Credit.

Pension-age people on lower incomes and below a savings threshold can also claim Local Council Tax Support (LCTS), a benefit awarded to more than 1.36 million claimants throughout England, as of June 30, 2024.

This is down from 1.38 million at the same time in 2023.

The number of claimants fell in every English region except London, where the figure rose by 0.3% – to almost 193,705.

Other towns and cities that saw a rise in claimants included Oxford (2.7%), Watford (1.1%), Nottingham (0.5%) and Birmingham (0.3%).

But the number of claimants fell significantly in some areas, including Bath and North East Somerset (-3.2%), Newcastle upon Tyne (-3.5%) and York (-3.7%).

With financial pressures on many pensioners still high following the cost of living and energy crises, it’s absolutely vital that people who may be eligible for extra support from the Government receive it

Caroline Abrahams, Age UK director

Ms Abrahams told the PA news agency: “With financial pressures on many pensioners still high following the cost of living and energy crises, it’s absolutely vital that people who may be eligible for extra support from the Government receive it.

“Many people may be missing out on valuable extra pounds, that can make the difference between living in a home that’s warm enough or one that’s too cold, with the further risks to health that can bring.

“We encourage everyone who’s finding it difficult to get by to put in a claim to the Government or their local authority – the worst that can happen is they say no but you may be rewarded with a bit of extra cash.”

Signatories of Age UK’s petition have warned the Government that “as many as two million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut: those on low incomes who just miss out on pension credit; those with high energy needs because of disability or illness; the one million who don’t receive the pension credit for which they are eligible”.

Ms Reeves announced changes to the winter fuel payment at the end of July, when she accused the previous Conservative government of having left £22 billion black hole in the public purse, made up of unfunded commitments.

She told the Commons at the time: “Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make, but these are the necessary and urgent decisions that I must make.”

The Scottish Government has also axed the winter fuel payment north of the border, where Deputy First Minister Kate Forbes claimed Westminster had cut the budget for its scheme by “almost 90%”.

Ms Forbes said: “Scotland has no choice but to bear the brunt of Labour’s cut to the winter fuel payment.”

The SNP politician added: “Not only does it drive a coach and horses through the devolution settlement, it ignores the disproportionate importance of this payment to households in Scotland, who face harsher winters and higher fuel costs.”

Miles Briggs, the Scottish Conservatives’ social security spokesman, described the decision as “a hammer blow to many Scottish pensioners”.

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