Warning as state pensioners lose £500 each from November | Personal Finance | Finance

State pensioners are being warned they are £500 worse off from November thanks to two key changes which the government has refused to reverse.

Thanks to changes being made to state pensions by Labour this winter, many state pensioners will lose as much as £600 of benefits normally payable from November, and only get £100 back on their energy bills to compensate over the next year, leaving most state pensioners £500 worse off.

Even those who are eligible for Pension Credit will still be at least £200 worse off overall.

That’s because as well as scrapping the universal Winter Fuel Payment for all state pensioners and making it means tested, the government has also chosen not to renew a Cost of Living payment of £300 which was sent to pensioners for each of the last two winters.

The Winter Fuel Payment and the Cost of Living payment were both usually paid in November onwards in past years.

Money expert Martin Lewis has urged pensioners who are eligible to ensure they claim Pension Credit this winter – claims for which can still be backdated until December – to maximise the money they do receive.

Martin Lewis says: “It’s become more crucial than ever [to claim Pension Credit] because that Winter Fuel Payment that up to £300 payment that did to go every pensioner is now dependent on Pension Credit.

“It’s worth noting that for the last two winters there was also a Cost of Living payment to every pensioner that was also worth £300, so every pensioner regardless of what they claim has lost £300 in the Cost of Living payment and then most pensioners also won’t get the next £300 for the Winter Fuel Payment because it’s now not universal.

“Energy bills are lower than last year, but for a six month period they’ll only be about £100 lower, so as you can see, being £600 worse off when you’re only getting a £100 gain means there’s a lot less money in the coffers when you’re looking at energy than there was last year.

“So, Pension Credit, now I’ve been shouting about this here and everywhere and on my site for many years and it is chronically underclaimed.

“So the most important thing I can say to everybody watching who may be eligible is those over 66 but also right across society, is many of our most vulnerable people are not claiming this crucial payment and we collectively have a responsibility to try and let them know about it.”

Martin said that single pensioners on less than £235 a week and couples on less than £350 should check as they could possibly get the payments.

This in turn would make them eligible for the £300 Winter Fuel Payment as well as topping up their income now.