CashNews.co
Pensioners could claim an extra £667 a year by making one simple change, money expert Martin Lewis has said. This move “could be a winner” Lewis advised – but only in certain circumstances.
His recommendation comes after the Government has come under fire for axing the winter fuel payments for millions of Britons.
The cash payment, which ranged from £250 to £600, will no longer be paid to all state pensioners.
Instead, it will now only be available to pensioners already receiving some kind of financial benefit such as pension credit, Universal Credit or income support.
The decision has sparked outrage from many campaign groups, and a petition urging Labour to reverse the decision has garnered around 400,000 signatures so far.
But if you are worried about missing out on this cash, Lewis revealed there is another way to boost your income.
He revealed that deferring your state pension payment for at least nine weeks can increase how much you are eligible for.
Lewis explained: “Defer your state pension, and the maths works out that if you live longer than typical life expectancy, you’ll gain; if you live less, you’ll lose.
“Live a typical lifespan and it’ll be pretty neutral. So if you’re in poor health, it’s not really worth considering.
“If you’re in great health with a history of family longevity, deferring could be a winner.
“Otherwise the real issue is tax – if you’re earning or have a decent income now, but’ll pay tax at a lower rate later on, then deferring can be very worthwhile.”
According to Lewis, for every nine weeks it is deferred, pensioners will receive an extra one percent which works out at around £2.20 a week.
However, if you are able to postpone payments a full year, you could be entitled to an extra 5.8 percent- or £667 a year.
Under the new winter fuel payment rules, you must have been born before 23 September 1958, live in England or Wales and receive one of the following to be eligible:
- Pension credit
- Universal credit
- Income-related employment and support allowance (ESA)
- Income-based jobseeker’s allowance (JSA)
- Income support
If you live in Scotland, you might get an annual pension age winter heating payment instead.
The petition to reverse the changes from Age UK states: “Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision.
“Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills.
“We believe as many as two million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut.”