Martin Lewis has issued a rebuttal to anyone who thinks most pensioners are well off and revealed that just one in four will get a triple lock rise of £900. The personal finance expert was praised for his intervention by the WASPI group which is campaigning for justice for women who missed out when the pension age was changed.
Some people on social media criticised Martin after he put Labour Culture Secretary Lisa Nandy on the spot over the decision to axe the winter fuel payment of up to £300 for 11 million pensioners. The only people now eligible to get it are those on Pensions Credit.
But some people took issue with his questions – with the Labour government saying pensioners could potentially gain £900 overall due to the triple lock formula for calculating the rise in April. He said: “‘Pensioners are net gainers this year, so it’s fine for them to lose winter fuel payments.’ I’ve had a few replies like that, so want to clear it up.”
Around 780,000 people who could claim Pensions Credit – meaning their overall income is less than £11,400 a year – are failing to do so, and Mr Lewis is calling for the government to take direct action including writing to them. He said: “Especially about the 780,000 I’ve been talking about , who are eligible for Pension Credit, thus qualify for Winter Fuel Payment but don’t claim it (e.g. due to dementia/complexity) – these are pensioners typically with less than £11,400 income.
“1. April’s £900 annual triple lock uplift quotes is for the FULL NEW state pension.
“2. Yet only 1 in 4 pensioners are on the ‘new’ pension, most are on the ‘old’ one, which only rose by £700
“3. Most people eligible for pension credit do not get the full state pension just a fraction of it due to not enough qualifying NI years – so the uplift will be fractions of the £700,
“4. In any case that £900 uplift was mainly to cover inflation (cost rises) that have ALREADY happened
“5. They have also lost £300 cost of living payment that was paid last two winters but wasn’t this year.
“6. Energy bills are c. £100 per typical home less this winter than last so that is a gain, but by no means enough to cover the £300 cost of living and £200-£300 Winter Fuel Payment loss.
“Of course similar maths apply to many who are just above the pension credit threshold too.”
The WASPI group said: “A few myths busted by @MartinSLewis. And loss of the #WFP is extra punishment for #WASPI #1950swomen already struggling to make ends meet due to #DWP #StatePension scandal. It’s also a scandal that fair compensation still hasn’t been paid. @RachelReevesMP.”
WASPI was set up by and for women born in the 1950s, who were negatively affected by an increase in their pension age. These women say their retirement plans were severely disrupted when they were told at short notice their State Pension age would increase by more than five years. WASPI states they are not against the equalisation, but that they “do not accept the unfair way the changes to our pensions were implemented with inadequate or no notice”.
An Ombudsman report issued more than six months ago said WASPI women should be issued compensation of between £1,000 and £2,950 each, with Parliament told to “act swiftly” in issuing the money. Despite this, no compensation has been paid out.