Martin Lewis shares loophole which could help pensioners with higher income secure £300 Winter Fuel Payment
Pension Credit is a gateway benefit to many other freebies and discounts
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Martin Lewis has highlighted a little-known loophole that could help those just over the earning threshold secure the Winter Fuel Payment of up to £300.
This comes after recent changes to the benefit made it means-tested rather than automatic, leaving around 10 million pensioners without the payment this winter.
In the latest MoneySavingExpert's Money Tips Email, Lewis said: "Don't assume you aren't due winter fuel help. There's a host of reasons you may still qualify for Pension Credit even if you're over the threshold."
The money saving expert emphasised that some pensioners may still be eligible for Pension Credit, which acts as a gateway to the Winter Fuel Payment, even if their income exceeds the usual weekly threshold of approximately £218.
The recent change to Winter Fuel Payment eligibility has significantly impacted state pensioners. Previously, the £200 to £300 payment was automatically given to households with someone over state pension age. However, the Labour government has now made the benefit means-tested.
As a result, an estimated 10 million pensioners will no longer be eligible for the payment. This shift has made Pension Credit a crucial gateway for accessing the Winter Fuel Payment.
Martin Lewis expressed frustration at this change, noting that Pension Credit is "critically underclaimed". He estimated that over 800,000 eligible pensioners are likely missing out on this benefit, which is worth an average of £3,900 per year.
Recipients of Attendance Allowance can see their income threshold for Pension Credit eligibility rise by £82 per week
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The Money Saving Expert founder has been urging people to check their eligibility for Pension Credit for over a decade, emphasising its importance now more than ever.
Despite the higher income threshold, Lewis explains that some pensioners can still qualify for Pension Credit. This is particularly true for those with disabilities or illnesses.
For instance, recipients of Attendance Allowance (AA) - a payment for older people needing help with daily activities - can see their income threshold for Pension Credit eligibility rise by £82 per week.
Importantly, the AA payment itself isn't counted as income. This means that even those with a small private pension, who previously couldn't claim Pension Credit, may now be eligible.
Lewis also notes that high housing costs are taken into account when applying. This could allow individuals to qualify even if they earn above the standard threshold, potentially leading to additional benefits such as council tax reduction or Housing Benefit.
Lewis shared a success story from a woman who claimed Pension Credit for her father through this loophole.
She emailed and said: "I've successfully claimed for my dad who has chronic arthritis - so he now gets an extra £72/wk.
"He has struggled for years, he'd not been able to claim Pension Credit previously as he has a small private pension. 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."
The total benefit amounted to an extra £150 per week, nearly £8,000 annually. This included retaining eligibility for the Winter Fuel Allowance.
The woman expressed gratitude, saying: "It will change his life and I'm really grateful to you."
Lewis also highlighted that having savings doesn't necessarily disqualify pensioners from receiving Pension Credit.
The first £10,000 of savings are disregarded in the assessment.
For amounts over £10,000, every £500 is counted as £1 per week of income. This 'tapering' system gradually reduces Pension Credit payments as savings increase.
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Lewis emphasised the importance of checking eligibility, even for those just over the threshold.
He said: "If in doubt, JUST CHECK. Better to ask & not get, than not ask & miss out..."
He shared an email from a reader whose mother unexpectedly qualified for Savings Credit, leading to additional benefits including the Winter Fuel Allowance and a free TV licence for over-75s.
Britons can use an online eligibility checker to know if they can claim the gateway benefit.