Martin Lewis issues plea over planned cuts to winter fuel payments

The new Labour government plans to save £1.4 billion this year by restricting winter fuel payments to only the poorest pensioners.

It has been a controversial decision, with some saying elderly people will be forced to choose between food or fuel when a 10% rise in the energy price cap comes into effect this winter.

The first Prime Minister’s Questions after the summer recess saw Rishi Sunak and Ed Davey both clash with Starmer on the issue and what the proposed changes will mean for pensioners.

Money expert Martin Lewis has also mounted a plea for the government to rethink their plans.

But what are winter fuel payments, and who is eligible to claim them?

Here is the background on the benefit currently dominating headlines.

What are winter fuel payments?

Since they were introduced by Labour in 1997, one-off fuel payments have been made to pensioners each winter to help them cover the cost of heating their homes.

Until this year, the payments were a universal benefit for all pensioners, meaning everyone was paid automatically no matter how much their income was.

The current payment is £200 for those aged between 66 and 79, and £300 for those over 80.

But the new Chancellor Rachel Reeves announced last month that the benefit will be means tested — so only the poorest will receive it.

She acknowledged it was a “difficult choice” but it was due to the “difficult circumstances because of the previous government and what they did”.

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What did Sir Keir Starmer say about winter fuel payments at PMQs?

The Conservatives and the Lib Dems both questioned Sir Keir Starmer on the government’s decision to axe winter fuel payments for millions of pensioners.

Rishi Sunak criticised the PM on taking winter fuel payments away from pensioners not on pension credits while approving public sector pay rises.

He said leadership was about choices and asked the PM why ‘has he chosen train drivers over pensioners?’

Meanwhile, Ed Davey asked about an elderly carer who will lose the winter fuel allowance.

Starmer says the government has been forced to take difficult decisions because of the legacy it was left and clear up the “mess” left by the Conservatives addressing a “£22bn black hole”.

Instead, he said his government will encourage more pensioners to claim pension credit and aligning it with housing benefit.

What has Martin Lewis said about winter fuel payment change?

Money-saving expert Martin Lewis is one of the loudest voices calling for a rethink.

He revealed that he will be meeting Chancellor Rachel Reeves next week to look again at her “dangerous” plan to restrict winter fuel payments for pensioners.

He said that while he understands the argument to means-test the benefit, the eligibility criteria should be more generous as it currently doesn’t include all those who will struggle.

Writing on X, he said: ‘The government must rethink Winter Fuel Payments or almost ALL pensioners will need to find £100s more than last winter.

‘While energy will cost less than during last winter’s crisis time, the reduction in rates only equates to a drop of roughly £100 over the six winter months for a household with typical usage.

‘Yet specific pensioner energy support has dropped by far more… Last year pensioner homes got up to £300 extra per household cost of living support – that’s gone, and its loss alone is far bigger than the saving made by slightly lower rates.

‘Piling on top of that is the government’s new decision to means-test Winter Fuel Payments, that will leave all except usually those who claim Pension Credit missing out on a further £200 – £300.

‘While there’s a strong argument for ending the universality of Winter Fuel payments, eligibility is being squeezed to too narrow a group. Those just above the thresholds will be hardest hit.

When he meets Reeves, he will advise her to look at methods to widen eligibility – such as “to homes in council tax bands A to D – an imperfect but workable proxy

Winter fuel payment eligibility – who gets it under the new rules?

From this year, only pensioners already receiving other benefits such as Pension Credit or Universal Credit will be given it.

This has caused alarm for two main reasons. The first is that most people only receive Pension Credit if their annual income is under £11,336.

It is not a high amount, and even those with income above this threshold may need help heating their home enough, especially if they have additional needs that require higher energy consumption, or live an an energy-inefficient home.

With the energy price cap about to rise by 10% this year, paying bills will be a challenge for many.

Age UK claimed that up to two million pensioners who ‘badly need the money to stay warm this winter’ will not receive it.

Secondly, although roughly 1.4 million people claim Pension Credit, there are almost a million pensioners (at least 800,000) who are eligible but who do not.

This could be for many reasons, such as pride and not wanting to take hand-outs, not knowing they are eligible, or not feeling able to manage the paperwork necessary to apply.

There are therefore fears that many who badly need the winter fuel payment will not get it because they will slip through the net if linked to other benefits, whereas if it was a universal benefit they would just get it in their bank account without having to jump through any hoops.

How to apply for the winter fuel payment

If you are a pensioner and think you should be eligible, the best way is to apply for Pension Credit as the fuel payment will be paid automatically to those receiving this.

You can apply online using the government’s website here or there is also the option to post a printed form.

Charities like Citizens Advice or Age UK can also give advice if you need help completing the form.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

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