Money Saving Expert Martin Lewis has hit back at suggestions that pensioners are “net gainers” this year after the triple lock increase.
In a new post on social platform X, the money expert pointed out that most state pensioners are actually £200 worse off than others state pensioners due to state pension changes.
Mr Lewis clarified that while some believe it’s “fair” for pensioners to lose Winter Fuel Payments due to the annual state pension rise, many vulnerable pensioners are still missing out.
He wrote on X: “April’s £900 annual triple lock uplift quotes is for the FULL NEW state pension. Yet only 1 in 4 pensioners are on the ‘new’ pension, most are on the ‘old’ one, which only rose by £700.” (sic)
In April 2016, the Conservative Government introduced the new state pension, replacing the old basic and additional pensions, to offer a more predictable payment rate and help people better plan for retirement.
The new state pension is available to men born on or after April 6, 1951, or a women born on or after April 6, 1953, and pays up to £221.20 per week, depending on National Insurance year contributions.
Those born before these dates still receive the basic state pension, which pays a lower maximum rate of £169.50 per week.
Every year both pensions rise in line with the triple lock pledge, which increases the payment rate by the highest figure out of inflation, wage growth, and 2.5 percent.
Based on this policy, the new state pension increased by £900 a year in April, while the basic state pension increased by around £700.
Mr Lewis pointed out that 75 percent of pensioners only qualify for the basic state pension, meaning the some of the most vulnerable are still receiving the lower rate.
He added that most pensioners in this group do not actually receive the full rate of state pension anyway, so their uplift is even smaller.
Moreover, Mr Lewis noted that the £900 increase was largely to cover inflation that has « already happened, » leaving many still struggling to make ends meet.
Mr Lewis, who has been calling on the Government to re-think their new Winter Fuel Payment eligibility criteria, lost his temper while interviewing Labour’s Lisa Nandy about the cut on ITV’s This Morning show.
State pensioners will now only qualify for the Department for Work and Pensions (DWP) Winter Fuel Payment of up to £300 if they receive certain means-tested benefits, such as Pension Credit. The move will see 10 million pensioners lose the support this winter.
While the Government has launched a drive to increase the number of people claiming Pension Credit this year, Mr Lewis argued that it will not stretch far enough.
Mr Lewis fumed: « You have gone from 20,000 people a month claiming Pension Credit to 40,000 people a month claiming Pension Credit, but there are 780,000 people.
“We have to accept; you have to accept. There will be hundreds of thousands of the poorest pensioners earning under 11,000 a year, which you will not reach this year. You are taking money out of their hands.”
Mr Lewis instead proposes the Government limit the Winter Fuel Payment to those residing in the A to D bands instead, which apply to the least valuable homes. He noted that this would “raise eligibility above” just those who are on Pension Credit.
