Martin Lewis, the founder of Money Saving Expert, has brought attention to a little-known loophole that could be beneficial for pensioners with higher incomes in claiming the Winter Fuel Payment of up to £300. Following changes by the new Labour government, millions of state pensioners may no longer automatically receive the £200 to £300 Winter Fuel Payment as it is now means-tested. However, Martin Lewis has highlighted that individuals with annual pension incomes above the Pension Credit threshold of around £218 a week might still qualify for the payment.
Through a post on his platform, Martin Lewis advised pensioners not to assume they are ineligible for winter fuel help, as there are exceptions that could still make them eligible for Pension Credit. One such exception is for those with disabilities or illnesses, who may receive Attendance Allowance (AA). Individuals receiving AA can see the income threshold for Pension Credit increase by £82 per week, on top of the AA payment, which is not counted as income.
In a touching example shared by a woman who reached out to Martin, her father, who suffers from chronic arthritis, was able to benefit from this loophole, receiving an additional £72 per week in Pension Credit. This increase in financial support has had a significant impact on his life, with an extra £150 per week making a substantial difference. The woman expressed her gratitude for Martin Lewis’ advice, which has resulted in her father being eligible for nearly £8,000 extra annually, including the Winter Fuel Allowance.
It’s worth noting that Pension Credit can also be accessed by individuals with savings. Savings under £10,000 are disregarded, and above this threshold, Pension Credit is gradually reduced, with every £500 over £10,000 considered as £1 of weekly income. Martin Lewis’ advocacy for this little-known rule has the potential to help many pensioners with higher incomes access additional financial support through the Winter Fuel Payment scheme.