What are winter fuel payments and pension credit, and how do you claim?

A political storm is swirling following the government’s decision to withdraw help with energy bills from millions of pensioners.

But what is the winter fuel payment and how can hundreds of thousands of eligible pensioners ensure they still receive it?

Winter fuel payments, until now, have been paid to all pensioners to help with energy bills. The payment was based on the principle that older people would be left exposed and at increased risk if they could not pay their bill.

But in July, Chancellor Rachel Reeves announced the payment would now be made only to those on low incomes who received certain benefits.

It means more than 10 million pensioners will no longer receive the money. While some say they never needed it, charities and many MPs are concerned about those still on a relatively small income who will miss out.

While the chancellor’s decision only covers England and Wales, the Scottish government also said it would end pensioners’ universal entitlement to the payment.

The benefit is separate from other support such as Cold Weather Payments and the Warm Home Discount.

This year, the winter fuel payment totals £200 for those on certain benefits and born between 23 September, 1944, and 22 September, 1958.

For those born born before 23 September, 1944, and on certain benefits, it is worth £300.

If you live with someone, and jointly claim benefits, then only one of the couple receives the benefit.

It is usually paid automatically in November or December.

Although paid without a direct claim, the vast majority of those eligible will only receive winter fuel payments if they have first claimed pension credit.

This is a state pension top up, which itself is worth thousands of pounds a year.

Crucially, an estimated 880,000 eligible pensioners fail to claim pension credit.

You could be eligible for pension credit if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account.

Disabled people, those caring for someone, and those with housing costs could be eligible despite these factors.

You can check your eligibility for pension credit via the government’s online calculator.

Information is also available on how to make a claim. There is also a phone line available on weekdays – 0800 99 1234.

The final date for making a backdated claim for pension credit, in order to receive the winter fuel payment, is 21 December.

The Department for Work and Pensions says that pension credit is worth on average more than £3,900 a year in itself. The amount received depends on a variety of factors.

Importantly, it is also a gateway to other financial support, on top of winter fuel payments.

They may include a reduction in council tax, a free TV licence when aged over 75, or help with NHS costs – most of which require separate applications. Charities can help go through the process.

The government spends about £265bn on pensions and benefits to more than 22 million people in England, Wales and Scotland. In total, that’s about £20bn more than total spending on health services.

However, huge amounts go unclaimed by those who are entitled to extra help.

While the total is extremely hard to put an accurate figure on, social policy and analytics company Policy in Practice estimates that £23bn was unclaimed in a year by households in Scotland, Wales and England.

It says the biggest chunk of that is unclaimed universal credit, followed by council tax support and carer’s allowance.

• Guide to benefits, when you qualify and what to do if something goes wrong, are provided by the independent MoneyHelper website, backed by government.