Northern Ireland

Pension credit applications in Northern Ireland soar in wake of winter fuel payment withdrawal

Chancellor Rachel Reeves announced in July that only pensioners in receipt of means tested benefits would receive the annual heating subsidy

People are encouraged to talk to their energy supplier if they are having trouble paying their bills
Pension credit applications have soared since the withdrawal of the universal winter fuel payment. PICTURE: PETER BYRNE/PA (Peter Byrne/PA)

The scrapping of universal winter fuel payments has led to a huge spike in pension credit applications, fresh figures reveal.

More than 4,500 applications for extra support have been made since Chancellor Rachel Reeves announced in July that the annual payment of between £100-£300 to all those aged 66 or over was being withdrawn.

According to Communities Minister Gordon Lyons, pension credit applications increased by 72% compared to the same period last year in the aftermath of the Labour chancellor’s announcement.

The decision to pay only pensioners in receipt of means tested benefits is thought to have impacted on around 249,000 pensioners across Northern Ireland, with roughly a quarter of that figure continuing to receive the annual payments.

Communities Minister Gordon Lyon speaking with PA Media at the Ulster Museum in Belfast about Casement Park
Communities Minister Gordon Lyons. PICTURE: LIAM MCBURNEY/PA (Liam McBurney/PA)

The devolved Stormont administration chose not to retain the universal winter fuel payment, which would have cost the regional coffers £44.3m this year.

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Instead £17m was earmarked for mitigations which will see a one-off payment of £100. The payments will be made before the end of March.



Some groups advocating on behalf of the elderly said the mitigation payment was inadequate, while concerns were also raised about the delay in releasing the cash.

SDLP MLA Daniel McCrossan said the sharp rise in pension credit applications, revealed in a written response from Mr Lyons to the West Tyrone representative, illustrated “how badly impacted older people were by the removal of the winter fuel payment”.

He described the previous universal payment as “an important lifeline for many”.

“The executive were not forced to implement this cut here – alongside others, we urged them not to, but they went ahead anyway,” Mr McCrossan said.

“When we asked them to introduce mitigations to properly support people they introduced a one-off £100 payment to replace a regular £300 annual payment.

He said despite an increase in pension credit applications, “the vast majority of pensioners have lost out”.

The West Tyrone MLA said many older people would struggle to keep their heating on during the current cold snap.

A spokesperson for the Department of Communities said it encouraged pensioners to check their eligibility for pension credit and any other benefits, including in correspondence informing winter fuel payment recipients of the recent changes.