Yesterday Chancellor Rachel Reeves announced a series of public spending cuts including Pension Credit.
Only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment going forward - those on the credit will get £200 and £300 if someone is over 80.
Money Saving Expert founder Martin Lewis has since responded to the announcement.
"I am asking all departments to find saving of £3billion... including all spending on consultancy... and they should cut back office costs" - Rachel Reeves in the financial statement
— Martin Lewis (@MartinSLewis) July 29, 2024
On X, formerly known as Twitter, he said: "The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double that pre-crisis, at levels unaffordable for millions.
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit.
"Yet again, those just above the thresholds will be hardest hit. This is often justified as there's a 'lack of household income data' to allow other targeting. However, there's a usable precedent from the emergency energy crisis measures announced in April 2022, which I'd urge the Government to look at. Then, a payment was made to homes in council tax bands A to D – as an imperfect but workable proxy for lower household incomes.
"That'd allow an additional group of lower to middle-income pensioners to keep the payments and mitigate bill shocks. Councils' discretionary funds could also be funded as in April 2022, for the limited numbers who still need help but don't qualify.
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"Plus, with this announcement, the Government has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don't get it, are informed, educated and helped through the process.
"It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner – and if possible proactively and personally contact people.
"Pension Credit is a crucial gateway benefit, giving access to a host of other entitlements, and now with the link to the Winter Fuel Payment, it makes it even more important to ensure fewer miss out."
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