Martin Lewis is against the Winter Fuel Payment being ‘squeezed’

Winter Fuel Payments – a tax-free payment made to all pensioners to help with winter energy bills. However, due to significant eligibility changes this year, many pensioners may find themselves ineligible for the 2024/25 Winter Fuel Payment.

In this article, we’ll explore what this means for those hoping to claim the Winter Fuel Payment and why Martin Lewis continues to raise concerns about the changes.

What is the Winter Fuel Payment?

The Winter Fuel Payment is a payment made to most people who receive State Pension or Pension Credit. This is usually an amount of £100-£300, to help cover the cost of heating in the winter months. They were first introduced in 1997 to help everyone above state pension age with their winter heating bills, including gas, electricity, oil, and solid fuels like coal.

What changes are being made to the Winter Fuel Payment?

Chancellor Rachel Reeves announced that the Winter Fuel Payment will no longer be made to everyone in receipt of State Pension or Pension Credit. She stated this is part of cutting back the £22 billion deficit the new Labour government has inherited.

Approximately 10 million in England and Wales will lose their payment, according to the BBC.

Key changes for Winter 2024-25:

1. Eligibility linked to means-tested benefits: The Winter Fuel Payment will only be available to pensioners who are receiving Pension Credit or other means-tested benefits, such as Universal Credit or Housing Benefit. This means that simply being of pension age will no longer qualify you for the payment.
2. Savings taken into account: In addition to being means-tested, savings will now be considered when determining eligibility. Pensioners with significant savings, even if they have a low income, may not be eligible for the payment. This could exclude many individuals who are just above the threshold but still face high energy costs.
3. Millions losing support: It is estimated that approximately 10 million people in England and Wales who previously received the Winter Fuel Payment will no longer be eligible under these new rules.
4. Eligibility dates: To qualify for the 2024/25 Winter Fuel Payment, you must have been born on or before 23rd September 1958 and be living in England or Wales. If you live abroad, you may still be eligible if you meet specific conditions, but this has also become stricter.

“Let me be clear, this is not a decision I wanted to make”

Chancellor Rachel Reeves

Martin Lewis expresses his concerns

As the price cap is forecast to rise 10% in October, most energy bills across the UK will be double pre-energy crisis levels. The Winter Fuel Payment helps the most vulnerable have some sort of heating in their homes over the winter months. Now, millions will be left without this extra support.

There is some good news: the amount given for the Winter Fuel Payment is not being reduced. This means that if you are eligible, you’ll still get up to £300.

The targeting of Winter Fuel Payments is too narrow with the winter we have coming.

Martin Lewis, founder of MoneySavingExpert.com

Martin Lewis With Lisa Nandy on Winter Fuel Payment Row:

Ways to save on your heating bill this winter

If you apply for the ECO4 scheme now, you’ll be able to make savings on your energy bill this winter. That’s because the average UK household saves hundreds per year with the improvements offered by the scheme. These include solar panels, an air source heat pump, and insulation.

Eligible households will receive these home upgrades completely free o f charge. Now is the perfect time to apply, so that you can experience the benefits of these improvements and heat your house for less over the winter months.

You can apply in just 30 seconds by clicking the button below.

Another way you can save on your bill this winter is by switching to a fixed-rate tariff. You can find out more about how fixed rate tariffs could beat the Winter Fuel Payment changes here.