Money specialist Martin Lewis Has given your decision LaborDecision to partially reversed its changes in annual Winter fuel payment for pensioners.
Chancellor Rahel reeves It is confirmed that while all pensioners like previous years will still not be paid, it will be increased to far more than in the previous winter.
About nine million More pensioners should receive payment As a result of the change, the meaning of three -fourth pensioners in total is now eligible.
Announcing the change, Ms. Reeves said: “It was a difficult decision to target the winter fuel payment, but the right decision due to heritage was left by us by the previous government.
“It is also true that we continue to fix this payment so that it is targeted and fair, rather than restoring the eligibility for all including the wealthiest.
“But we have now worked to expand the eligibility of winter fuel payment, so no pensioner will remember on low income.”
The change essentially increases the threshold to receive payments from £ 11,600, as well as a pension credit claims, up to £ 35,000 without any additional requirements.
Reacting to the news, Mr. Lewis stated that change is a “huge improvement”, but pensioners might know about a piece of major information.
Importantly, pensioners with an income of more than £ 35,000 will see their winter fuel payment “Claud Back” (until they go out) through the tax system. But it can bring some complex rules for homes with more than one pensioner that can be helpful in understanding.
Mr. Lewis gives an example: “You have found a house which is due to receiving £ 300 with two state pensioners, which is considered £ 300 for the Clavback as £ 150 and £ 150.
“So if this person earns more than £ 35,000, they lose it. If this person earns under £ 35,000, they keep it; they still get £ 150. If they earn more than £ 35,000, they lose it both. And if they earn both under £ 35,000, they both keep it.”
This is a relatively “good system”, the founder of the money saving expert says, because it means that only a pensioner’s income will not decide whether the entire payment has been kept.
Mr. Lewis also said that he is “very grateful to the Chancellor” for the decision, saying: “This is a great improvement that we already had, and this means that there is still a instrument test.”
“And many people said that they do not want millionaires and billionaires have to receive winter fuel payments. Well, they will not get winter fuel payments, they can either get out or claw back through the tax system.
“But this means that more pensioners who were still struggling with high energy bills will get this payment.”