Martin Lewis issues winter fuel pay warning amid big chancellor shakeup

Martin Lewis has issued a stark warning to pensioners about the chancellor’s new announcement on winter fuel payments. Rachel Reeves announced on Monday (July 29) that rescue payments will only be given to those eligible for Pension Credit or other means-tested benefits.

These “major changes” have been made to the eligibility criteria for Winter Fuel Payments next winter, the Mirror reports. The Winter Fuel Payment, of between £100 and £300, is usually given to pensioners in November and December each year, but this year is the first time since 2022 that pensioners will not receive the extra £300. which was previously offered helps to alleviate the cost of living crisis.

Money-saving expert Martin reacted to the news, warning that once again those who exceed the eligibility thresholds will be hit hardest. Mr Lewis described the revised eligibility as “too narrow”, which could increase pensioner poverty.

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He said: “The targeting of winter fuel payments is too narrow with the winter we are having. Pensioners were already due to receive less as this will be the first time since the winter of 2022 that they will not receive up to £300 extra winter fuel. The cost of living surcharge is likely to rise by 10% in October and remain high throughout the winter, leaving most energy bills almost double their pre-crisis levels, at unaffordable levels for millions.

Mr Lewis is extremely worried about the chancellor’s decision. He said: “Many pensioners are paying winter fuel payments of £100 to £300 to enable them to keep their heating on during the cold months. While there is an argument for ending its universality due to tight national finances, it is too tight. a group only those who receive benefits and pension credit. Again, those just above the thresholds will be hardest hit.

“This is often justified because there is a ‘lack of household income data’ to allow other targeting. However, there is a usable precedent from the energy crisis emergency measures announced in April 2022, which I would urge the Government to consider. A payment was then made to homes in council tax bands A to D – as an imperfect but viable proxy for lower household incomes.”

The expert suggests a more inclusive approach. He said: “This would allow an additional group of pensioners on low or middle incomes to keep payments and cushion bill shocks. does not qualify.

“Furthermore, with this announcement, the Government has a huge moral imperative to ensure that the 800,000 people eligible for Pension Credit who are not receiving it are informed, educated and helped through the process. They are planning an awareness campaign, but they need to make sure they reach every corner and, if possible, proactively and personally reach out to people. Pension Credit is an essential benefit which gives access to a range of other entitlements and now with the link to Winter Fuel Payment it does so even more. important to ensure fewer misses.”

The chancellor defended the decision. She told the House of Commons: “I am taking the difficult decision that those who do not receive Pension Credit or certain other means-tested benefits will no longer receive their winter fuel payments. The Government will continue to offer £200 fuel payments for households. receiving Pension Credit or £300 for households receiving Pension Credit with one person over 18. Let me be clear that this is not a decision I wanted to make.”

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