Mel Stride

The assessments undertaken by the Department and HM Treasury do not contradict each other. They are on a different basis. HM Treasury analysis is based on Census 2011 data and compares pensioners to the non-pensioner population. Whereas the Department’s analysis uses pensioner benefit administrative data to assess pensioners in receipt of Pension Credit at November 2023, compared to those who received a Winter Fuel Payment in 2022/23.

Where both documents consider the likelihood of receiving Pension Credit, both show that women are less likely to be impacted by changes to the eligibility criteria for the Winter Fuel Payment, due to them being more likely to claim Pension Credit. The HM Treasury assessment states that “PC specifically is disproportionately claimed by older, single women.” Older, single women are, therefore, more likely to retain their eligibility for a Winter Fuel Payment and, as a result, are less likely to be affected by the policy. This chimes with the Department’s conclusion that “this policy will have the highest proportional impact on couples, and a marginally greater impact on men than women.”

As part of the Public Sector Equality Duty, the Department will continue to monitor and review the impact of the policy, using this to inform future decisions.

My Department continues to work in collaboration with local areas to support their development and delivery of the new employment support programme, shaped around local services and priorities. The programme will primarily help economically inactive disabled people, people with long term conditions and people with additional barriers, to help them find and fulfil their potential to work.

We will shortly be launching the grant guidance for the programme, after which local authorities will work with DWP and local partners to design their local programmes. It is anticipated that some areas will begin delivery of the new programme from spring 2025 but this will be a phased roll out, led by local authorities.

The WorkWell pilot areas began to go live from October 1^st. The majority of the 15 pilot areas are now taking referrals, with the remaining areas expected to begin over the coming weeks.

We launched a Call for Evidence to seek views on how the current fit note process works and the support required to facilitate meaningful work and health conversations to help people start, stay and succeed in work. It closed on the 8 July 2024. We received over 1,900 responses that are now being reviewed and will inform our approach moving forward.

As part of our Get Britain Working plan, more disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.

Universal Support money has been allocated to a new Supported Employment Programme. Figures from the most recent Business Case approved by HMT in October 2024 show a total spend of c.£1.4bn from 2023/24 to 29/30. However funding beyond the current spending review is not confirmed.

Annual breakdowns of spend will be determined by local delivery plans. This information is not available at this point in time while planning work continues with Local Authorities.

We are committed to delivering on our manifesto pledge to give disabled people the confidence to start working without the fear of an immediate benefit reassessment if it does not work out. We will set out plans for this in due course.

The Access to Work Scheme provides grant funding for disabled people, and those with a health condition, who are in or about to start work. The grant supports with workplace adjustments that go beyond what would normally be expected from an employer through their duty to provide reasonable adjustments under the Equality Act 2010

The Department for Work and Pensions is committed to reducing waiting times for new applications for Access to Work, as well as renewals. We are considering the best way to deliver that for customers. We have increased the number of staff processing Access to Work claims and have prioritised applications from customers who are about to start a job, and renewals.

This government is committed to breaking down the barriers to opportunity for disabled people and people with health conditions, improving our employment and health support offer and tackling rising levels of economic inactivity. We will replace or reform the Work Capability Assessment alongside putting in place a proper plan to support disabled people into work, and continue to engage with stakeholders to keep the views of disabled people and people with health conditions at the heart of what we do. We will be considering our own approach to social security in due course.

Labour’s manifesto is clear that we intend to reform the Work Capability Assessment alongside a proper plan to support disabled people to work. We will say more about these plans in the months ahead, including genuine employment support for disabled people.

We will be considering our own response to social security in due course, informed by a range of evidence. This Government is committed to championing the rights of disabled people and to the principle of working with them, so that their views and voices will be at the heart of all that we do.

An equality analysis was produced as part of the Government’s decision-making process in line with the requirements of the Public Sector Equality Duties.

A regulatory impact assessment has not been produced for this legislation because the effect is on individuals and private households rather than businesses or voluntary sector organisations.

A Family Test assessment, an environmental principles assessment and an equality analysis were produced as part of the Governments decision-making process in line with the requirements of the Public Sector Equality Duties.

A full Impact Assessment has not been prepared for the Social Fund Winter Fuel Payment Regulations 2024 because there is no significant new impact on business, charities or voluntary bodies beyond their existing obligations, because they are out of scope of the legislation.

The evidential basis was based on best assessment at the time that the change would impact individual households and have no significant impact on charities or voluntary bodies.

Around an estimated 10 million people in Great Britain previously entitled to Winter Fuel Payment will not receive it due to the policy reform. These are based on the 22/23 Winter Fuel Payment statistics and Feb-24 Pension Credit statistics (sources shown below).

This estimation is calculated by subtracting the number of Pension Credit recipients for Great Britain from the number of Winter Fuel Payment recipients for Great Britain. This is essentially the number of Winter Fuel Payment claimants pre-policy change not claiming Pension Credit, as an estimate of those who will no longer receive Winter fuel payment.

Please note that the above figures do not take into account any potential increase in Pension Credit take-up we might see as a result of the Governments Pension Credit Awareness Campaign. We do not have data on those additional Pension Credit claims by Parliamentary constituencies or local authorities.

Also, the published Pension Credit figures refer to households, so the number of individuals will be higher (i.e., taking account of households where it is a couple claiming Pension Credit).

Furthermore, Pension Credit claimants are the majority of those that will be eligible for Winter Fuel Payments, not all. There are other pensioners who are eligible for Winter Fuel Payments (as they claim other means tested benefits) but they are not considered in these figures as it is not possible to do so.

Source:

The Winter Fuel Payments statistics are published here: Winter Fuel Payment statistics for winter 2022 to 2023 - GOV.UK (www.gov.uk)

Pension Credit data is published here: Pension Credit – Data from May 2018

There have been five separate iterations of the Household Support Fund (HSF). Since the first iteration was introduced, over £2.5 billion has been allocated to Local Authorities in England to support those most in need through the HSF (October 2021- September 2024).

The Government has announced funding to extend the HSF for a further 6 months, from 1 October 2024 until 31 March 2025.

DWP requires that Local Authorities provide Management Information (MI) returns to the Department, which demonstrate that they are delivering the scheme in accordance with the guidance and grant determination that the Department have set out for the scheme. This includes information on the type of household supported, category of spending, types of support and how support has been accessed.

MI has been published for the first three iterations of HSF following their completion. For HSF2 and HSF3, the information shows the proportion of each round spent on energy and water, essentials linked to energy and water and households with pensioners. This information is not available for HSF1. It is not possible to determine the proportion spent on energy support for households with pensioners or the total amount spent in any category for any round of the fund due to data limitations.

The information can be found at the following links:

For HSF1: Household Support Fund management information for 6 October 2021 to 31 March 2022 - GOV.UK (www.gov.uk)

For HSF2: Household Support Fund 2 management information for 1 April to 30 September 2022 - GOV.UK (www.gov.uk)

For HSF3: Household Support Fund 3management information for 1 October 2022 to 31 March 2023 - GOV.UK(www.gov.uk)

MI for HSF4 is due to be released later this year. MI for HSF5 and HSF6 will be published once the schemes conclude and subject to the usual quality assurance process.

Pension Credit recipients can be used as an indicator of those pensioners who will be eligible for Winter Fuel Payments following the change to Winter Fuel Payment entitlement. Information on pensioners’ income bands based on whether they are in receipt of Pension Credit is available via published HBAI (Households below average income) statistics.

The statistics can be found using: Households below average income: for financial years ending 1995 to 2023 - GOV.UK (www.gov.uk) (File name: pensioners-hbai-detailed-breakdown-2022-23-tables, Table name: Table 6.2db (BHC): Quintile distribution of income for pensioners3 by various family and household characteristics, United Kingdom).

The value of savings by income band is not available.

The number of pensioners in receipt of state pension only is too small for robust analysis. Any pensioners in receipt of low amounts of State Pension would likely be eligible for other state support, subject to their individual financial and personal circumstances.

We know there are low-income pensioners who aren’t claiming Pension Credit, and we urge those people to apply.

The income threshold for eligibility for the Guarantee Credit element of Pension Credit is dependent on personal circumstances. Therefore it is not possible to produce a robust estimate of how many pensioners exceed this due to State Pension income.

Statistics showing how many households are in receipt of Pension credit in each Parliamentary constituency can be obtained from the published data on Stat Xplore here: Pension Credit – Data from May 2018. Please note that the published Pension Credit figures refer to households, so the number of individuals will be higher (i.e., taking account of households where it is a couple claiming Pension Credit).

In published DWP Pension Credit Take-up statistics, it is estimated that up to 880,000 households who were entitled to receive Pension Credit did not claim the benefit. However, these statistics are only available at Great Britain level and cannot be broken down to smaller geographical areas. The latest available Pension Credit take-up statistics for Great Britain cover the financial year 2021 to 2022 and are available at: Income-related benefits: estimates of take-up: financial year ending 2022 - GOV.UK (www.gov.uk). The published Pension Credit caseload for Great Britain, for financial year 2021/2022 shows that an estimated eligible 1,410,000 households received pension credit. This is obtained from the latest published Benefit expenditure and caseload tables 2024 and is available at: Benefit expenditure and caseload tables 2024 - GOV.UK (www.gov.uk).

DWP provides Authorities with a variety of data to assist in the identification of vulnerable pensioner households, which they may use in their targeting of the Household Support Fund. This includes, but is not limited to:

• the National Insurance number, names, addresses and contact telephone numbers of those in receipt of the Guarantee Credit and/or Savings Credit element of Pension Credit and their appointees if appropriate, as well as for all claimants on ESA (IR)
• the National Insurance number, names, addresses and contact telephone numbers of customers who are in receipt of HB but not in receipt of a means tested benefit (for example: UC, Income based Jobseekers Allowance, ESA (IR), Income Support and Pension Credit) or Tax Credits

Authorities are also encouraged to use their own data, local knowledge and networks to identify and target households in need, including those with pensioners.

The Government has announced funding to extend the Household Support Fund (HSF) for a further 6 months, from 1 October 2024 until 31 March 2025.

An additional £500 million will be provided to enable the extension of the HSF, including funding for the Devolved Governments through the Barnett formula to be spent at their discretion, as usual.

As with previous HSF schemes, the Fund will be made available to County Councils and Unitary Authorities in England to provide discretionary support to those most in need.

The HSF scheme guidance and individual Local Authority funding allocations for the forthcoming extension will be announced as soon as possible ahead of the scheme beginning on 1 October 2024.

The Government estimates that linking entitlement to receipt of Pension Credit and other relevant DWP income-related benefits will reduce expenditure by around £1.4 billion in 2024/25 and £1.5 billion in 2025/26, based on the assumption of a 5% increase of Pension Credit take-up.

Winter Fuel Payments are classified as Annual Managed Expenditure (AME). The estimated savings are sensitive to forecasted take up of Pension Credit. The final savings will be certified and published by the Office for Budget responsibility at the Autumn Budget on the 30th October, taking account of any behavioural response.

With regards to the associated passported benefits in this financial year and each of the next four financial years, the DWP does not hold this information.

The savings were estimated in Fixing the Foundations as Annually Managed Expenditure (AME) Winter Fuel Payments (WFP) savings of £1.4bn, for 2024/2025, for Great Britain. These included an assumption about increased take-up of Pension Credit which is in line with the highest levels it has achieved historically. WFPs are classified as AME. Estimated savings are sensitive to forecasted take up of Pension Credit. Final savings will be certified and published by the Office for Budget responsibility at the Autumn Budget on the 30^th October Budget, taking account of any behavioural response.

Benefit combinations statistics are routinely published and made publicly available via DWP Stat-xplore. Due to the suspension of State Pension statistics, the latest available data covers the period up to May 2023. At May 2023, there were 1,228,563 people in receipt of the State Pension and Pension Credit in England and Wales and 127,219 people in receipt of the State Pension and Pension Credit in Scotland. This represents around 12% of all people in receipt of the State Pension in England and Wales at May 2023 and around 13% of all people in receipt of the State Pension in Scotland at May 2023.

Information relating to Pension Credit eligibility is only available via take-up statistics. The latest available Pension Credit take-up statistics for Great Britain cover the financial year 2021 to 2022 and are available at: Income-related benefits: estimates oftake-up: financial year ending 2022 - GOV.UK (www.gov.uk). It is estimated that up to 880,000 families who were entitled to receive Pension Credit did not claim the benefit. However, from this data, we are unable to estimate how many of those who are eligible for Pension Credit are also in receipt of the State Pension.

Benefit expenditure and caseload tables are published annually and are available at: Benefit expenditure and caseload tables 2024 - GOV.UK (www.gov.uk). The table below shows the estimate of the Pension Credit caseload in Great Britain for the next five years. These estimates will include those who are in receipt of the State Pension, as well as those who are not.

We do not hold data about Pension Credit eligibility for the next five years.

For the latest year 2022/23, 1.9 million pensioners were in relative poverty after housing costs (AHC) in the UK. Of these, 300,000 pensioners were in receipt of Pension Credit, approximately 15%. A household is in relative poverty if its income is less than 60 per cent of the median household income in a given financial year. ​

For the latest year 2022/23, 1.4 million pensioners were in absolute poverty AHC in the UK. Of these, 200,000 pensioners were in receipt of Pension Credit, approximately 14%. A household is in absolute poverty if its income is less than 60% of median household income in 2010/11, uprated by inflation.​

‘Households Below Average Income’ provides estimates on the number of and percentage of people living in low-income households based on their household disposable income. As an income measure, it does not include other available resources that might impact on a household’s poverty levels such as savings.

These numbers have been rounded to the nearest 100,000 and percentages rounded to the nearest whole per cent.

This data is available on Stat-Xplore at https://stat-xplore.dwp.gov.uk in the ‘Households Below Average Income’ dataset.

More Information on the data included in the ‘Households Below Average Income’ dataset can be found here: https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2023/households-below-average-income-series-quality-and-methodology-information-report-fye-2023#income-definition.

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