Martin Lewis has responded to claims that Labour were considering partially reversing the cuts to Winter Fuel Payments later this year. Winter Fuel Payments are worth up to £300 and used to be available to everyone over state pension age.
However, the rules were changed last winter so that households had to be in receipt of certain benefits, including Pension Credit, in order to keep getting a Winter Fuel Payment.
The change resulted in around ten million households not receiving the payment last winter. A new report from the Guardian today suggested ministers were considering whether to increase the £11,500 threshold over which pensioners are no longer eligible for the allowance.
However, in a new interview with the BBC, health secretary Wes Streeting said the policy was not being formally reviewed – but admitted it impacted the support Labour received at the local elections last week.
Labour lost 187 council seats and control of the only council it was defending. It has been reported that Labour is looking at ways to address the backlash surrounding the cuts.
Writing on X/Twitter, Martin Lewis shared his opinion on the reports. He said: “Reports Govt may partially U-turn on the Winter Fuel Payment cut by raising the effective eligibility threshold from £11,500.
“That’d be welcome but still doesn’t fix the worst underlying problem… the means testing mechanism (ie to get it you must claim Pension Credit) is flawed.
“Around 700,000 of the most vulnerable pensioners, already earning under £11,500, don’t get Winter Fuel Payments because they don’t go through the overly arduous process of claiming Pension Credit.
“Thus they miss out in both the important support that brings and on Winter Fuel Payments. That needs to change. None of this is new.
“Many of us have been shouting it until we’re blue in the face. If a fix is to come, let it be a proper one, not just an electoral sticking plaster.”
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Wes Streeting defended the “unpopular decision”, saying it was the right thing to do to free up investment for the NHS, schools and other public services.
But he added: “I know that people aren’t happy about winter fuel allowance, in lots of cases. We did protect it for the poorest pensioners but there are lots of people saying they disagree with it regardless.”
Winter Fuel Payments were introduced in 1997 by the previous Labour Government and had been available to everyone above state pension age since then.
Back then, it was worth £20 as standard, or £50 for those claiming means-tested benefits. It was increased to £100 in 1999/2000 and then to £200 in 2000/01.
It was later adjusted again in 2003/04 so households with someone aged 80 or over get £300. Due to the cost of living crisis, they were boosted to be worth up to £600 in winter 2022/23 and 2023/24 – meaning some pensioners have been used to getting up to £600 for the last two winters.
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