Martin Lewis says winter fuel payments now need to be fixed in two ways by Keir Starmer
Martin Lewis says winter fuel payments now need to be fixed in two ways by Keir Starmer
It comes after the Labour leader announced in parliament that the Government will change the means testing system
Martin Lewis
(Image: 2018 Simon James )
Martin Lewis has told the Prime Minister that two key problems need to be fixed amidst his U-turn of the benefit means testing regarding Winter Fuel Payments. The 53-year-old, behind MoneySavingExpert.com, says Keir Starmer must re-examine the threshold levels, and a "flawed" system regarding pension credit.
It comes after the Labour leader announced in parliament that the Government will change the means testing system to raise the threshold and give the Winter Fuel Payment to more pensioners, beyond the current £11,800 Pension Credit limit.
Last year, Chancellor Rachel Reeves announced an unpopular change to the £200 to £300 payment for state pensioners, which changed eligibility for the payment from being universal to only being for those who claim Pension Credit. For money-saving tips, sign up to our Money newsletter here .
Martin Lewis wrote on X: 'Very pleased to just hear the Prime Minister has just said he wants more state pensioners to get Winter Fuel Payments (WFP) and they will work out what they're doing in time for the budget.
"As I've said since day one, there are two main problems with the way the means testing of WFP was done.
"1. The threshold is too low. Most need earn under £11,800/year to get it.
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"That's an extremely low income when typical energy bills are £1,800/year.
"2. Using Pension Credit, a benefit that has been known to be critically underclaimed for years, as the mechanism to prove eligibility, is flawed.
"It leads to, on government's own figures, 700,000 of the poorest and most vulnerable pensioners, people who have total income below £11,800/year missing out.
"The issue that complicates WFP means testing is it's a household not individual payment.
"I have suggested to the Chancellor in the past that an imperfect but speedily workable solution would be to give WFP to all pensioners who are on pension credit or in homes that are council tax bands A to C.
"Hopefully they now have time to fix this frankly unpopular mess, that came from a rush job, and come up with something that works effectively for more people for the coming winter."
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The Prime Minister's official spokesman said: "We obviously want to deliver this as quickly as possible, but the Prime Minister was very clear in the House that this has to be done in an affordable way, in a funded way.
"That's why those decisions will be taken at a future fiscal event."
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