Martin Lewis issues ‘don’t assume’ warning as millions of people set to miss out on £300

Martin Lewis explained how 800,000 people are likely eligible for Pension Credit but are not claiming it - which means they could miss out on their chance to still get the Winter Fuel Payment

Martin Lewis has urged thousands of low income pensioner households to not “assume” they’re not eligible for the Winter Fuel Payment this year.

Winter Fuel Payments are worth up to £300, depending on your circumstances, and used to be available to every household where someone is over state pension age - but the rules have changed so you now need to be in receipt of means-tested benefits, such as Pension Credit. It is estimated that ten million pensioners will no longer be able to claim Winter Fuel Payments as a result of the change.

In the latest MoneySavingExpert.com newsletter, Martin explained how 800,000 people are likely eligible for Pension Credit but are not claiming it - which means they could miss out on their chance to still get the Winter Fuel Payment. Martin said: “Pension Credit is a critically underclaimed top-up of the state pension for those on lower incomes that I've been urging people to check out for over a decade. On average it's worth £3,900/yr. Yet over 800,000 eligible pensioners likely still miss out. That's why it's frustrating that it's the new main gateway for the £200 (£300 for over-80s) Winter Fuel Payment - which until now was paid to all pensioners.”

Pension Credit tops up your weekly income to £218.15, or to £332.95 if you’re in a couple. Your income normally needs to be below these amounts to be eligible, but in some cases, you might still be able to claim - for example, if you have a severe disability or you're a carer.

Martin said: “You can qualify with HIGHER income if you have a disability or illness. An example is those who get Attendance Allowance (AA) - a crucial payment for older people who need help and support with day-to-day activities. If you get it, the income threshold for qualifying for Pension Credit rises by £82/wk (on top of your AA payment, which isn't counted as income).”

You may also still qualify if you have high housing costs, which will also be taken into account when you apply. Martin said: “This means you can qualify if you earn above the standard Pension Credit threshold (and may mean a council tax reduction), and you may be due Housing Benefit or Support for Mortgage Interest.”

Pension Credit also means you could become eligible for other discounts and freebies, including a free TV licence for over-75s, free home insulation and boiler grants, free dental treatment and vouchers for glasses and contact lenses. You'll also be entitled to the Warm Home Discount worth £150 each winter, Cold Weather Payments worth £25, plus discounts on your water bill and cheaper broadband.

You can apply for Pension Credit online on Gov.uk website, by calling 0800 99 1234, or by printing out and filling in a paper application form. You can get a friend or family member to ring for you, but you'll need to be with them when they do.