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Money expert Martin Lewis has issued an urgent “plea” to pensioners amid changes to Winter Fuel Payment as he reveals he will be meeting with chancellor Rachel Reeves next week.
Writing in his weekly email, the Money Saving Expert founder says all pensioners should check if they are eligible for the cold weather benefit under the new rules. This winter will be the first where only pensioners who receive Pension Credit are eligible for the Winter Fuel Payment, rather than all pensioners as had been the case since 1997.
Around 880,000 eligible pensions don’t claim Pension Credit, he points out, meaning they will now miss out on the winter payment. They will also miss out on several other incentives which the ‘passport’ benefit can open up to them, such as a free TV licence, council tax deductions and help with energy bills.
Mr Lewis has urged everyone who think they may be eligible to check with the DWP. This can be done online or over the phone, and will require you to have your National Insurance number to hand, alongside information about your savings and income.
Pension Credit tops up pensioners’ (66+) weekly income to £218.15 if they’re single, or £332.95 for couples. Mr Lewis says any single person on £218 a week or under is likely to get it, but someone receiving under £235 should still check.
For couples, a pair under £333 is likely to get the benefit, but if you both receive under a joint £350 it’s still worth checking.
The Money guru points out that it’s also worth those who have previously been rejected checking again, as Pension Credit threshold was increased by 8.5 percent in April.
The changes to Winter Fuel Payments were announced by Ms Reeves last month as she revealed measures to plug the government’s £22bn “black hole” in public spending, which they say was left concealed by the previous Conservative government.
Speaking in Commons, Ms Reeves said it was not a decision she “wanted to make,” but was forced to due to the “unforgiveable” inheritance from the previous government. Charities and campaigners have criticised the move, saying the new eligibility is too narrow for every pensioner who would benefit to be assured to get it.
Mr Lewis has said he is due to meet Ms Reeves next week to discuss her decision after urging ministers to “rethink” it in August, writing: “only the very poorest, with incomes often under £11,400, will get it.”
“That’ll likely leave many just above the threshold, who rely on it to keep the heating on during the cold months, struggling. And that’s before we factor in the chronic under-claiming of Pension Credit that means many on the very lowest incomes will be in dire straits.”
Charity Age UK says around two million struggling pensioners will miss out as a result of the measure. For around one million of these, it is because they earn no more than £50 over the threshold, which equates to a modest income of around £14,000 a year.
For 800,000 it is because they are eligible for Pension Credit but do not claim it due factors like lack of awareness, complexity, and stigma. Last month, the government launched an awareness campaign urging all pensioners who believe they may be eligible to check with the DWP, as well as liaising with local government to identify households which may be eligible.
However, Age UK points out Pension Credit take up has never exceeded two-thirds in the past decade – even when it was changed in 2015 to provide a free TV licence – casting doubt that the latest campaign is unlikely to improve the figure.
