Martin Lewis says Rachel Reeves plans to target Winter Fuel Payment to too narrow a group.

Today the Chancellor, Rachel Reeves, has announced that there will be major changes made to the eligibility criteria for Winter Fuel Payments this coming winter. 

• Winter Fuel Payment is a payment to pensioners - almost 13 million people are eligible.
• It is worth between £100 and £300, usually paid in November and December each year.
• Yet this year is the first since 2022 that pensioners will not receive the up-to-¬£300 extra winter fuel payments to help with the cost of living.

Reacting to the announcement Martin Lewis, founder of MoneySavingExpert, said: "The targeting of Winter Fuel Payments is too narrow with the winter we have coming. Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.

"The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those 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.

"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."

For full details on the announcement and what it means for those affected see MSE’s news story. For any further interviews or comments please contact press@moneysavingexpert.com.

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