Martin Lewis says state pensioners set for huge £667 windfall after Labour axed Winter Fuel Payments

Last month, Chancellor Rachel Reeves confirmed the energy bill benefit will be axed for those on low income who are claiming benefits.

Under the Winter Fuel Payment, every pensioner is entitled to up to £300 in energy bill support every winter.

The decision to axe the payment sparked fury from campaigners who claimed many pensioners will struggle between heating and eating without the additional support.

However, explaining how pensioners could make the most of a bad situation, Lewis said that deferring the payment for at least nine weeks can help boost your weekly state pension.

Lewis said: “Defer your state pension, and the maths works out that if you live longer than typical life expectancy, you’ll gain; if you live less, you’ll lose.

“Live a typical lifespan and it’ll be pretty neutral. So if you’re in poor health, it’s not really worth considering.

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“If you’re in great health with a history of family longevity, deferring could be a winner.

“Otherwise the real issue is tax – if you’re earning or have a decent income now, but’ll pay tax at a lower rate later on, then deferring can be very worthwhile.”

The money-saving expert explained that every nine weeks it is deferred, pensioners will receive an extra one per cent which equates to around £2.20 a week.

However, if pensioners are able to delay for a full year, they could receive an extra 5.8 per cent – around £12.83 a week or £667 a year.

Lewis explained that deferring the payment for at least nine weeks can help boost your weekly state pension

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With Reeves’s recently announced changes, pensioners will now need to be in receipt of means-tested benefits from the Department for Work and Pensions (DWP) to claim.

Among the qualifying benefits is Pension Credit, which is reserved for those of state pension age who are on low income.

Following Labour’s announcement to axe Winter Fuel Payments, pension campaign group Age UK launched a petition to reverse Reeves’s decision.

At time of writing, the petition has received almost 400,000 signatures.

The petition from Age UK states: “Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision.

“Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills.

“We believe as many as 2 million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut.”