Martin Lewis says 'loophole' is giving state pensioners free £300 each

The BBC Sounds podcast host, who has a weekly podcast on BBC Sounds, Spotify and Apple Podcasts, is trying to raise awareness of how Winter Fuel Allowance payments can be ringfenced and protected.

Martin Lewis has shared a £300 Winter Fuel Payment "loophole" which is handing pensioners £300 each. The BBC Sounds podcast host, who has a weekly podcast on BBC Sounds, Spotify and Apple Podcasts, is trying to raise awareness of how Winter Fuel Allowance payments can be ringfenced and protected.

Under the current rules, you must be above the state pension age, so 66, and on a low income to claim Pension Credit, which then gives you the Winter Fuel Payment from the Department for Work and Pensions (DWP) after an eligibility shake up.

Mr Lewis says there are certain cases where a person can qualify with a higher income. ITV star Mr Lewis urged older people to check their entitlement to Pension Credit. The consumer expert described the benefit as a "financial lifeline" to low-income pensioners noting that a "better" name for it should be "the state pension top-up".

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An example is those who get Attendance Allowance (AA) - a crucial payment for older individuals requiring assistance with everyday tasks. If you receive AA, your Pension Credit qualifying income cap increases by £82 per week (in addition to AA, which doesn't count as income).

Mr Lewis shared a grateful message from reader Adele, who wrote: “Thank you for bringing AA to my attention. I’ve successfully claimed for my dad who has chronic arthritis - so he now gets an extra £72/wk.

“Now he has AA, he’s also eligible for a further £35/wk Pension Credit, and his Housing Benefit has been increased by £40/wk. So a total extra £150/wk - a huge help, and he will still be eligible for Winter Fuel Allowance.”

And possessing savings won't necessarily bar you from Pension Credit eligibility. Any savings below £10,000 are disregarded, and beyond that threshold, Pension Credit is 'tapered' off, considering every £500 above £10,000 as £1 weekly income.