In their rush to remove the Winter Fuel payment from anyone over 66 who is earning or receiving more than £35,000 a year Ministers have forced HMRC and pensioners into a lot of extra work. They have decided in their haste to pay everyone the £200 who is over 66, then to get the money back by a variety of different ways. So the state has to find the money, and has to spend money on getting the money back with a delay. HMRC is burdened with a new chore to use the tax system for something which should have been sorted out by the Benefits department.
I have no problems with the idea that people on comfortable incomes do not need fuel subsidy even when living at home all the time because they are not working. There will be arguments about what is comfortable these days. I do have arguments with this clumsy benefit as amended. Now a large number of people have to declare to HMRC their £200 which they are not entitled to so it can be clawed back in an awkward and delayed system. The system does cope with some other categories of people who do not qualify for Fuel benefit.
I have seen the letters the DWP is sending out to everyone over 66 this year. It tells them all that they “will get £200 for Winter Fuel payment” as before.
It then states their new policy “If your personal income is over £35,000 HMRC will take your payment back. You can find more about this under the heading “Check if HMRC will take your payment back”. There is no explanation of why this new policy is coming in and under what powers.
It goes on to say “This is your personal income only. If someone you live with will also get a payment, HMRC will look at their income separately. You can check if your income is over the threshold at www.gov.uk/guindance/payingback the winter fuel payment…..You will need to include the Winter fuel payment on your tax return. If you file your tax return on line where possible HMRC will include the Winter Fuel payment for you. You should check that your payment is automatically shown on your online return and include it if it is not”.
Why can’t DWP Ministers design a scheme that does not involve sending £200 to millions of people that are not entitled to it and then having to ask HMRC to recoup it sometime somehow? Why do they lack any ability to explain this cut in benefits in a friendly way? People who do not want to receive a benefit if they are not entitled to it have to take responsibility for paying it back. Why?