Martin Lewis has highlighted a “chronic” problem affecting Winter Fuel Payments as the eligibility criteria for the benefit become less generous.
The payment previously went out to most people over state pension age but this has now been changed for the coming winter, and now only those on certain benefits will get the payments, such as Pension Credit.
But there is a further issue here, as Pension Credit is massively underclaimed, with 800,000 people missing out on the support, which can be worth £8,300 a year.
Writing on X, Mr Lewis explained: “Part of the problem with winter fuel payments is the chronic underclaiming of Pension Credit, a key benefit that now triggers entitlement.
“It’s thought 880,000 due it won’t get it, and they’re the poorest pensioners. I doubt the awareness raising campaign can have much impact on that (I and others have been shouting about it until we’re blue in the face, for years).
“It needs proactive one on one contacting of likely candidates, eg.. those not getting full state pensions. Yet even that is hard because there are so many scams targeting elderly how do you ensure people trust that it is legit?”
A Pension Credit claim is typically worth £4,000 but claiming the support opens up access to other help such as council tax discounts and a free TV licence for claimants aged 75 and over.
Joanna Elson, chief executive of Independent Age, recently said: ” With the UK Government’s proposed changes to make the Winter Fuel Payment means-tested – including to people on Pension Credit – it’s more important than ever that everyone receives what they are entitled to.
“On top of the Winter Fuel Payment – worth between £100 and £300 and paid every winter to help with energy bills – receiving Pension Credit entitles you to a host of other financial entitlements, potentially worth up to almost £8,000 a year on top.”
Other support available for claimants includes Housing Benefit, free NHS dental treatment, and vouchers towards buying glasses or contact lenses. Individuals may also be able to get money off broadband and water bills.
Mr Lewis has previously criticised the Labour Government for tightening the qualifying criteria for the Winter Fuel Payment.
Following the news the energy price cap would increase 10 percent in October, he said: “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. I’m due to meet the Chancellor in a couple of weeks, and will then be urging her to look at methods to widen eligibility – such as to homes in council tax bands A to D – an imperfect but workable proxy for lower household incomes.”
He warned many pensioners will again face difficult pressure on their budgets due to high energy bills.
The financial journalist explained: “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 Governments 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.”
