Martin Lewis has issued a stark warning to pensioners still on the old state pension system.
Speaking on ITV1’s Good Morning Britain, Lewis highlighted the crucial difference between the two state pension levels.
Those who reached state pension age before April 6, 2016, receive the old ‘basic’ state pension of £169 per week. In contrast, the new state pension pays roughly £221 weekly.
Lewis emphasised that many on the old state pension are entitled to Pension Credit, which would qualify them for the £300 Winter Fuel Payment. However, a significant number are not claiming this benefit.
The money saving expert expressed particular concern for the estimated 880,000 pensioners who are eligible for Pension Credit but have not applied, describing them as “among the poorest in society”.
Lewis urged those on the basic state pension to contact the Pension Credit hotline if their weekly income is less than £218 or they’re on the basic state pension.
People can find out if they’re eligible for Pension Credit and how much they can get online via the Pension Credit calculator PEXELSHe stated: “You will almost certainly qualify for Pension Credit which will then top up your weekly income and also qualify you for the £300 Winter Fuel Payment.”
Lewis emphasised the urgency of addressing this problem, noting that these pensioners are “the ones most at risk this winter of not being able to pay their bills.”
The decision to cut the £300 Winter Fuel Payment for all but the poorest pensioners has sparked controversy.
Caroline Abrahams, charity director at Age UK, warned the move was “reckless and wrong” and “spells disaster for pensioners on low and modest incomes”.
Citizens Advice has suggested “targeted bill support” in response to the cut.
Andy Manning, head of energy policy at the organisation, said: “This price rise means bills are now around two-thirds higher than before the energy crisis.
“With record levels of energy debt, the removal of previous support and changes to the eligibility of the Winter Fuel Payment, people are in desperate need.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, added that for many pensioners, “this winter will feel like the most expensive on record”.
The Labour Party Government could replace the £300 Winter Fuel Payment cut with “targeted” support, according to recent reports.
This comes as pressure mounts from leading charities and experts to address the impact on vulnerable pensioners.
Francis of the End Fuel Poverty Coalition called for immediate action, stating: “It is so vital the ministers bring in more support for vulnerable households this winter, reductions in standing charges and a social tariff.”
He pointed out that the energy industry has made over £457billion in profit since the start of the crisis, suggesting there are sufficient funds to ensure warmth for all this winter and beyond.
The Government’s long-term plans to boost home energy efficiency and improve energy security were acknowledged, but critics argue these measures will take time to take effect.