Are you one of the 9 million UK pensioners who recently received the news that you’ll get the Winter Fuel Payment? Worth up to £300, this is a much-needed financial lifeline for thousands of older people struggling to heat their homes through winter. However, it’s also leading to a rise in scams!
Following extensive campaigning by groups such as the End Fuel Poverty Coalition, the UK Government has now revised the Winter Fuel Payment eligibility rules. This U-turn will help many more vulnerable households keep warm this year.
Sadly, this has also created opportunities for other individuals to profit from the Government’s change in dishonest ways. Fraudsters.
Winter Fuel Payment criteria confusion
Experts are already warning of a sharp rise in scams targeting older people. Pensioners who are confused about whether they qualify for the benefit are particularly vulnerable.
Previously, to qualify for heating help, pensioners needed to receive Pension Credit or other means-tested benefits, such as housing benefit. Now, anyone over state pension age with an income of £35,000 or less per tax year can receive the payment.
This is a positive step. However, it leaves many older people wondering which criteria are used to reach this new threshold. For those uncertain of their eligibility status, this confusion can leave a doorway open to fraudsters.
How do you really know if you qualify?
Ocean Finance’s Personal Finance Expert, Fiona Peake, is very clear on the new criteria.
“Simply put, if you’re over state pension age and your total annual income is £35,000 or less, you’ll receive the payment. This includes income from private pensions, freelance work, and interest on non-ISA savings.’
She also says the benefit will be paid automatically into qualifying bank accounts around November or December. This means there will be no need to fill in forms, make telephone calls or put in claims.
What happens if you’re over the £35,000 threshold?
If you’re already certain that you’re over the threshold, there will be an option to opt out of receiving the payment. However, it remains unclear how this will operate.
Financial experts worry that these unclear rules are presenting opportunities for scammers to take hold.
Fiona Peake says,
“The Winter Fuel Payment will be a lifeline for nearly two million older households who are living in fuel poverty, but the new eligibility criteria make things more complicated. A single pensioner earning £36,000 a year could have to pay back the full amount, while a couple earning £69,000 could keep every penny. That creates a grey area scammers love to exploit.”
How are scams targeting pensioners?
Ocean Finance’s Financial Crime Manager, Siobhan Blagborough warns fraudsters often use new Government announcements as opportunity to trick people. This is particularly rife when the rules are at their most unclear.
“We’re already seeing fake messages pretending to be from the Department of Work and Pensions (DWP), urging pensioners to ‘apply now’ or risk missing out on their £300 payment. These scam texts often include fake links and ask for personal details or for people to reply ‘YES’ to claim the payment. These messages are bogus.’
The Department of Work and Pensions confirms that all payments will be paid automatically to those eligible.
What can you do if you’re a victim of Winter Fuel Payment scams?
Siobhan Blagborough advises customers to trust their instincts:
“Genuine government payments won’t be sent via text messages with links or requests for personal information.”
She also urges anyone who has clicked on suspicious links or given personal details to contact their bank immediately. They can also report the crime to Action Fraud on 0300 123 2040.
Do you qualify for the Winter Fuel Payment? Then, you could be eligible for other government grants
If you’ve reached state pension age and qualify for the Winter Fuel Payment, you could also qualify for government energy schemes.
People living in properties with an EPC rating of E, F, or G may be eligible for grants such as ECO4 and the Great British Insulation Scheme. If you qualify, you could get insulation, heat pumps, and solar panels for free!
This Government assistance can help vulnerable households make their homes more energy efficient. beat rising energy prices and lower energy bills. For more information, click the link below!
