More older people are set to miss out on £150 payments this winter due to the rising State Pension age in the UK. The State Pension age is currently in the process of rising from age 66 to 67, with the next phase of the change getting underway this month from October 6.
Phased Increase Delays Eligibility
The age increase is being phased-in gradually over a two-year period due to complete in 2028, delaying the point at which people with a 66th birthday within this timeframe become eligible for the State Pension and, in turn, other pension-age benefits. For older people on a low income, it means a delay in eligibility for Pension Credit as the qualifying age for the benefit is linked to State Pension age.
If you were born between October 6, 1960, and November 5, 1960, you won’t be eligible to claim Pension Credit until you are 66 and seven months old, delaying the point at which you can start receiving payments until at least May 6, 2027. Pension Credit can top up your weekly income to £238 if you're single, or £363.25 if you have a partner, but it can also unlock access to other financial perks — including £150 off your winter energy bills.
Warm Home Discount Reopens
The Warm Home Discount scheme reopens this October and provides a one-off £150 discount off your electricity bill. You can qualify this winter if you get certain means-tested benefits, including Pension Credit, but if your 66th birthday falls within the transitional period, your eligibility for Pension Credit and, in turn, the Warm Home Discount will be delayed.
The length of this delay depends on when your birthday falls, but for those born between October 6, 1960, and September 5, 1960, who are due to turn 66 within the next month, eligibility is delayed by seven months. As such, you’ll reach State Pension age when you are 66 years and seven months old, which will be from May 6 next year, meaning you'll miss out on the £150 Warm Home Discount this winter.
Experts Warn of Financial Squeeze
Explaining the impact of the age rise, Clare Moffat, pension and tax expert at Royal London, told the Express: “Raising the State Pension age doesn't just affect when people can claim their State Pension, it also means some older people will have to wait longer before they can access valuable financial support. For those whose 66th birthday falls during the transition period, the impact could be significant.
"Pension Credit is worth thousands of pounds a year for eligible pensioners on low incomes, and it can also act as a gateway to additional help, such as support with housing costs, council tax and the Winter Fuel Payment, depending on individual circumstances. Having to wait several extra months, or potentially close to a year, before becoming eligible could leave some households facing a real financial squeeze at a stage of life when opportunities to increase their income may be limited.”
Of course, there are a few other ways to qualify for the Warm Home Discount that doesn’t rely solely on Pension Credit, as those on Universal Credit, Housing Benefit or income-related Employment and Support Allowance will also be eligible. While those with a private pension or those who still receive an income from work are better equipped to cope with the delays caused by the State Pension age increase, those on lower incomes who are approaching retirement and depend on pension-age benefits, like Pension Credit, are advised to check their eligibility for other support.
For example, it’s possible you may be eligible to claim Universal Credit which, in turn, would entitle you to the £150 Warm Home Discount this winter. Rebecca Lamb, External Relations Manager at Money Wellness, told the Express: “People with savings or a comfortable private pension may be better placed to cope with the delay, but those living on modest incomes often don't have that safety net. If you're already stretching your income to cover food, heating and other essentials, finding another year's worth of money could be incredibly difficult.”
She added: “If you're approaching retirement and your finances depend on pension-age benefits, it's worth thinking about how you'd manage if you had to wait a little longer. It's also a good time to check whether there's any support you could claim before State Pension age, such as Universal Credit or Personal Independence Payment, depending on your circumstances. You can do this using an online benefit checker, like ours.
"Even once people reach State Pension age, it's still worth checking whether they qualify for Pension Credit. It's one of the most underclaimed benefits in the UK, and too many people miss out because they assume they won't be eligible. A quick benefits check could leave you better off by thousands of pounds a year."
