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Money guru Martin Lewis has hit out at the government’s changes to Winter Fuel Payments as he reacts to Ofgem raising their energy price cap from October.
Writing on Twitter / X, the Money Saving Expert founder says minister “must rethink” the changes to the payments, or else leave all pensioners with hundreds of pounds more to pay this winter.
In July, chancellor Rachel Reeves announced the eligibility for the annual winter payments worth up to £300 would be changed for the first time since their introduction in 1997. The cold weather benefit will now only be eligible for older people who claim Pension Benefit, rather than all above pension age.
Mr Lewis writes that, while the new Ofgem rate is lower than last winter, all pensioners are likely to struggle more this year. With the withdrawl of the £300 per household cost of living support and the changing eligibility of Winter Fuel Payments, worth £200 – £300, some could be as much as £600 worse off than last winter.
Echoing the criticisms campaigners have made in the wake of the change, the money expert writes that the controversial changes to the winter payments mean “eligibility is being squeezed to too narrow a group”.
“While there’s a strong argument for ending the universality of Winter Fuel payments,” write Mr Lewis, “those just above the thresholds will be hardest hit.”
Older people charity Age UK has said around two million “struggling pensioners” will miss out on the vital support with energy bills in the colder months if the change is not reversed. They have launched a campaign to halt the measure and urge the chancellor to reconsider, with their petition already reaching 430,000 signatures.
Mr Lewis says he is meeting with chancellor Rachel Reeves in the coming weeks, where he will urge her to “look at methods to widen eligibility” ahead of her October budget. He suggests including all pensioners living in homes under council tax bands A to D – the four lowest value bands – as an “imperfect but workable proxy.”
Age UK says that several factors will mean pensioners who may need the Winter Fuel Payment won’t be eligible for it under new rules. For around one million, it will be because they make just over Penion Credit threshold – no more than £50.
It is also believed there are around 200,000 pensioners who have high energy needs because of disability or illness, or who live in energy inefficient homes which cost more to heat.
On top of this is the 800,000 pensioners who are eligible for Pension Credit but don’t claim it. Age UK says this is usually to do with factors like stigma, complexity or lack of awareness.
Charity director Caroline Abrahams CBE said: “Some commentators have suggested that means-testing the Payment is fair because the older people who need it the most will still be protected, but the evidence shows this is sadly not the case. This is why Age UK will be campaigning shoulder to shoulder with older people over the next few months to persuade the Government to think again.”
To combat the low take up of Pension Credit, the government has started an awareness drive to encourage eligible pensioners to take up the benefit and secure their Winter Fuel Payment.
Launching the campaign, Ms Reeves said: “The dire state of the public finances we inherited from the previous government means we’ve had to make some very difficult decisions.
“Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.
“We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for Pension Credit.”
