AMIDST a crowd of demonstrators outside Downing Street yesterday stood Robert Trewhella, a 68-year-old taxi driver from Cornwall.

Like millions of other state pensioners, Robert faces the grim reality of losing the £300 winter fuel payment this year.

2

2

Advertisement

The winter fuel payment was previously available to everyone over the state pension age (66).

However, cuts made by chancellor Rachel Reeves mean the payment is limited to retirees on pension credit or those receiving certain six other means-tested benefits.

It means that over 10million households will no longer qualify for the payment and a further 760,000 risk missing out if they don’t apply for pension credit before December 21.

In a powerful display of desperation, over a dozen state pensioners descended on Downing Street yesterday to protest these very cuts.

Robert was among several campaigners, backed by charities Independent Age, 38 Degrees, Silver Voices, and Organise, who delivered petitions with over half a million signatures calling for the policy to be reversed.

Robert lives alone in Penzance and receives a weekly state pension of £221, placing him just £2 above the threshold at which most people qualify for pension credit (£218.15 a week).

To make ends meet, he works a few hours each day for a small taxi company, earning approximately £300 a month. 

Despite his efforts, Robert remains in a precarious financial situation.

He faces monthly expenses of £675 for private rent, £124 for council tax, and an additional £40 to £50 for gas and electricity costs.

With just under £10,000 in savings, Robert is caught in a cruel cycle of financial instability, relying on his savings to supplement his income. 

He told The Sun: “I shouldn’t be working, I should be enjoying life at this point.

“But if I give it up, I will barely have enough to make ends meet, after all my savings won’t last forever.

“It’s cruel. I’m trapped in a cycle of deciding whether to work and live comfortably or suck it up and claim what little I can.”

Even if Robert were to retire, he would be eligible only for housing benefit and still not qualify for pension credit.

However, he would still not be eligible for pension credit and housing benefit claims on their own do not make you eligible for the winter fuel payment.

But, claims for housing benefit alone do not make one eligible for the Winter Fuel Payment.

When delivering the petition to Number 10 on Wednesday, Robert said: “Hopefully those in charge take notice and realise that too many older people will struggle this winter without this payment.

“It’s not right to take money away from vulnerable members of society.”

Joanna Elson CBE, chief executive of Independent Age added: “We hope the UK Government listens to the voices we’ve shared and protects the winter fuel payment for older people living on low incomes.

“It’s clear from the number of signatures that there is widespread concern about the plans.

“Tying the payment to pension credit will see far too many older people fall through the cracks.

“There are also many people in later life that just miss out on pension credit, sometimes by just a few pounds and pence.”

It comes after thousands of Sun readers flooded our Winter Fuel SOS helpline last Wednesday, looking for help to hang on to the payment.

The Sun has now launched a free tool to help you check whether you will get the winter fuel payment this year.

To be eligible for this year’s winter fuel payment, you must have an active claim for the benefits mentioned below during the “qualifying week,” which runs from 16 to 22 September.

These include Universal Credit, employment and support allowance (ESA), jobseeker’s allowance (JSA), income support, child tax credit and working tax credit and pension credit.

Most households automatically receive the winter fuel payment, including those on pension credit.

As new claims for pension credit can be backdated by up to three months, you can still apply now and qualify for this year’s winter fuel payment.

The absolute deadline to claim the benefit and qualify is December 21.

CHECK IF YOU QUALIFY

Pension credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.

This is known as “guarantee credit”.

If your income is lower than this, you’re very likely to be eligible for the benefit.

However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

You could get an extra £81.50 a week if you have a disability or claim any of the following:

• Attendance allowance
• The middle or highest rate from the care component of disability living allowance (DLA)
• The daily living component of personal independence payment (PIP)
• Armed forces independence payment
• The daily living component of adult disability payment (ADP) at the standard or enhanced rate.

You could get the “savings credit” part of pension credit if both of the following apply:

• You reached State Pension age before April 6, 2016
• You saved some money for retirement, for example, a personal or workplace pension

This part of pension credit is worth £17.01 for single people or £19.04 for couples.

Pension credit opens the door to other support, including housing benefits, cost of living payments, council tax reductions and the winter fuel payment.

Claims for pension credit also open doors to a number of freebies and discounts.

For example, pension credit claimants over 75 qualify for a free TV licence worth up to £169.50 a year.

Claims for the benefit also provide eligibility to £25 a week cold weather payments and the £150 warm home discount.

We have a guide on all the state pension freebies and discounts you can get.

How much is the winter fuel payment and how is it paid?

Payments last year were worth between £300 and £600, depending on your specific circumstances.

This is because the amount included a “Pensioner Cost of Living Payment” – between £150 and £300. 

This year, it will be worth £200 for eligible households or £300 for eligible households with someone aged over 80.

That means you could receive up to £300 in free cash depending on your circumstances.

Most payments are made automatically in November or December.

You’ll get a letter telling you:

• How much you’ll get
• Which bank account it will be paid into

If you do not get a letter or the money has not been paid into your account by January 29, 2025, you must contact the Winter Fuel Payment Centre on 0800 731 0160.

Saving for a house deposit might seem daunting, but with proper planning, discipline, and the right strategies, you can reach your goal within 2 years. Whether you’re a first-time buyer or planning for your next property, following these tips will help you achieve your target faster and save for a house deposit in 2 years.

Set a Clear Savings Goal

Before you begin saving, you need to know how much you should save for a house deposit. Most buyers require between 5-20% of the property’s value for a deposit. For example, if you’re aiming to buy a £200,000 property, you’ll need a deposit between £10,000 and £40,000. Breaking this down into monthly targets will help you understand how much you need to save to reach your deposit goal in two years. It’s worth knowing that the average property price for the UK in October 2024 is £293,000, although there is significant regional variation. You’d need a deposit between £14,650 and £58,600 based on the average house price above.

Create a Detailed Budget

One of the best ways to save efficiently is by creating a budget that tracks your income and expenses. Budgeting Apps like Monzo, YNAB, or Emma can help you see exactly where your money goes and identify areas where you can cut back. A well-structured budget will ensure that you stay on track toward your savings target. Budgeting for a house deposit is essential, as it allows you to prioritize savings over unnecessary spending.

Open a Dedicated Savings Account

To maximize your savings, consider opening a high-interest savings account or a Lifetime ISA (LISA) if you’re a first-time buyer. A LISA offers a 25% government bonus (up to £1,000 annually), which can significantly boost your deposit savings. You can put in up to £4,000 each year until you’re 50. You must make your first payment into your ISA before you’re 40; otherwise, you’ll miss out.
Keeping your savings in a dedicated account will reduce the temptation to dip into it for other expenses. Obviously, there are conditions attached to a LISA, such as it must be used to buy your first house, and the £4000 does count towards your annual ISA allowance of £20000.

Cut Unnecessary Expenses

Cutting down on unnecessary expenses is crucial to hit your savings goal. Consider reducing discretionary spending on things like dining out, entertainment, gym memberships or subscriptions you rarely use, and never go to a supermarket without a shopping list. If you have Netflix, Prime, Apple TV and Disney +, do you need them all? Redirect the money saved into your house deposit savings fund. Even small sacrifices like cutting back on daily Starbucks can accumulate over time; ditching a fancy coffee a day can save approximately £1600 per year!

Boost Your Income

If cutting expenses alone doesn’t get you where you need to be, consider ways to boost your income. Picking up a side hustle like freelance work, tutoring, or driving for Uber can help you save faster. Alternatively, asking for a raise at your current job or exploring a new job opportunity can significantly accelerate your progress toward your deposit goal.

Explore Government Schemes

First-time buyers can benefit from government support, for example, in England, the First Homes Scheme, which, if you’re a first-time buyer, you may be able to buy a home for 30% to 50% less than its market value. Obviously, there are conditions such as the home must be your only or main residence, and you do need a mortgage offer for at least half the price of the home – tap into the bank of Mum and Dad, perhaps? Although you can no longer apply for a Help to Buy Equity Loan for properties in England, you can still apply for a similar scheme in Wales. This scheme offers equity Mortgages to buyers of new-build homes.

Automate Your Savings

Setting up automatic transfers to your savings account is a great way to stay consistent. Automating your savings allows you to transfer a set amount of money every month without thinking about it. This ensures that your deposit grows steadily, and you are more likely to stay on track with your savings goals. Many digital banking apps, such as Revolut and Monzo, also offer the facility to put your spare change from purchases directly into a savings account. This is a great way of building up a pot of cash without even thinking about it.

Avoid Debt and Build Credit

While you’re saving for a deposit, it’s important to avoid taking on new debt that could affect your mortgage application. Focus on building your credit score by paying off existing debts and making sure all bills are paid on time. A strong credit score will help you secure better mortgage rates when you’re ready to buy. Another thing to consider is that mortgage lenders will carry out affordability checks when you apply for a mortgage, so if you are spending £500 a month on a shiny new car, they will consider that when deciding how much you can afford to pay each month.

Track Progress and Stay Motivated – Avoid temptation

Saving for a house deposit can feel like a long journey, but by regularly tracking your progress, you’ll stay motivated. Break your total savings goal into smaller milestones, and celebrate when you achieve them – frugally! Keeping your eye on the bigger goal of homeownership can help you stay focused throughout the process. While you may not want to live like monks and never go out, you may want to think about giving your high-spending friends a bit of a wide birth if they are constantly eating out – the peer pressure could prove too much and before you know it you’ve spent £100 on a meal. According to the ONS ( Office for National Statistics), the average household spends around £1278 per year eating out – not including alcohol.

Bonus Tip: Stay Updated with Property Market Trends

As you save, keep an eye on UK property market trends and mortgage interest rates. Also, sites like Zoopla provide a lot of information on market trends. Being aware of market shifts and interest rate changes will help you make informed decisions when the time comes to buy.

Pensions providers and industry experts are having their final say on the FCA’s value for money framework proposals ahead of the consultation closing today (17 October).

In August, the FCA laid out plans to provide millions of pensions savers with better value for money.

Under the proposals, defined contribution (DC) pension schemes will be required to publicly disclose how they are doing across the three key metrics.

These are investment performance, quality of service and cost.

Each will be assessed against a red, amber and green ‘traffic light system’ to determine which – if any – need attention.

Poorly performing schemes will be required to provide an action plan of how they will improve or if they don’t, “protect” savers by transferring them to better schemes.

Where schemes are assessed as not delivering value for money, they will be closed to new business until they improve.

The regulator added that this should reduce the number of savers with workplace personal pensions that are not delivering value.

This, it added, will be done through greater scrutiny and competition on long-term value rather than predominantly cost.

If the proposals go ahead, it will be a mandatory requirement for regulated firms to provide an annual report at the end of each calendar year.

The new value for money framework has been produced in partnership with the FCA, The Pensions Regulator (TPR) and the Department for Work and Pensions (DWP).

The FCA is proposing data metrics be disclosed in retirement age cohorts for the three stages of a pension savings journeys: growth, de-risking and at retirement.

The regulator is also proposing to require disclosure of past investment performance at three levels.

The framework is designed to work in conjunction with the Consumer Duty, which states firms have an obligation to deliver fair value from pension products they offer.

The Association of British Insurers’ director of long-term savings, health and protection, Yvonne Braun, said: “The value for money framework could transform the workplace pensions market by driving a more holistic assessment of pension schemes for their overall value proposition and improving the comparability of schemes. We fully support both aims as they should benefit savers.

“It will be crucial to further finesse the metrics to guard against duplicating the Consumer Duty, and to ensure the proposed red-amber-green ratings and their implications do not trigger market disruption.

“It is also very important that the framework is applied to the trust and contract-based market consistently and at the same time.”

FCA unveils plan to give pension savers better value for money

CEO at NOW: Pensions, Patrick Luthi, said he “welcomed the FCA’s efforts to shift focus from purely cost and charges towards a more holistic view of value”.

However, he added that there are “key concerns we believe must be addressed by the FCA to ensure the intended outcomes are realised”.

“Firstly, we are concerned that a one-size-fits-all approach may not fully account for the market’s diversity, without considering the specific needs of different market segments.

“Furthermore, we believe there needs to be a greater focus on risk-based regulation.

“In practice, this should include widening the scope of the framework to include both workplace and non-workplace pensions to reflect the varying risks and protections in these systems.

“We believe that process and metrics used in the consultation need more refinement. For example, the exclusion of forward-looking investment performance metrics could stifle innovation and deter investment in private markets.”

Director and head of DC at LawDeb, Elizabeth Hartree, said: “The UK DC pensions landscape is in reasonably good shape, and we believe it allows for the provision of good outcomes for members.

“Regulatory initiatives that improve those outcomes should be welcomed, but must consider both the intended and unintended consequences.

“The value for money framework – as it stands – has the potential to risk driving provider behaviours that, in our opinion, are not in the best interests of savers.

Aegon pensions director, Steven Cameron, said: “Aegon is supportive of a single value for money framework across all defined contribution workplace schemes – contract and trust-based – to enable transparency and comparability.

“While the aims of the FCA proposals are sound, as always, the devil is in the detail, and there’s a lot of detail and prescription here.

“Our three key concerns relate to the sheer volume of data, the proposed 3-level RAG rating and its commercial implications, and the need for careful implementation with a trial period.

“We have suggested limiting past investment performance to three, five and 10 years, as one year is too short and 15 years looks like ancient history for a current value assessment.

“We also recommend focusing on the last year’s charges, rather than historic administration charges that have little relevance to current value for money.”

MILLIONS of people who suffer from health conditions can get financial help by applying for Personal Independence Payments (PIP).

But you may not know that there are other benefits you can claim at the same time.

1

PIP is worth up to £184.30 a week, or £9,583.60 a year, which can make a huge difference to your home.

Read on to find out how it works and if you can claim.

What is PIP?

PIP is a benefit which is paid by the Department for Work and Pensions (DWP).

It is designed to help you cover day-to-day costs if you are suffering from a long-term health condition.

You can claim it if you have both a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or mobility problems because of your condition.

You can claim it even if you are working, have savings or receive other benefits.

PIP is split into two parts and you can get both depending on your circumstances.

The daily living part is paid to people who need help with everyday tasks such as preparing food, using the toilet, washing, eating and drinking.

The mobility part is given to those who need help getting around, for example working out a route and following it, leaving your home or physically moving around.

You do not need to have a disability to claim the mobility part.

If you have a cognitive or mental health condition such as anxiety then you may also be eligible.

How much will I get?

The amount of money you receive will depend on how difficult you find everyday activities and getting around.

There is a lower and higher rate for both payments.

The Daily living part has a lower rate of £72.65 a week and a higher weekly rate of £108.55.

Meanwhile, the mobility part has a lower rate of £28.70 and a higher weekly rate which is £75.75.

PIP payments are tax-free and the amount you will get is not affected by your income or savings.

Payments are usually made every four weeks directly into your bank account.

You will be assessed by a health professional to calculate the level of help you can receive and your rate is regularly reviewed to ensure you are getting the right support.

Can I claim other benefits while I get PIP?

You can get other benefits while receiving PIP.

These top-ups are known as a premium and you can only get them if you receive the following benefits:

• Housing Benefit
• Jobseeker’s Allowance
• Income Support
• Working Tax Credit

You can also get Employment and Support Allowance and Pension Credit but only if you get the PIP daily living component.

You could get up to £42.50 a week in disability premiums for a single person or £60.60 for a couple.

If you are entitled to the severe disability premium you will get £81.50 a week for a single person or £163 a week as a couple.

Meanwhile, those who are entitled to the enhanced disability premium will get £20.85 a week for a single person or £29.75 for a couple if at least one of you is eligible.

To claim the top ups contact the office in charge of your benefits, tell them you receive PIP and ask them if there is any other help you are entitled to.

They should be able to tell you how much extra you will get.

You may need to send them a copy of your PIP award letter to prove you are receiving the benefit.

Receiving a disability premium will not reduce the amount of PIP or any other benefits you get.

It’s a good idea to ask the DWP what extra you are entitled to and how to apply for it.

If you get PIP then it will not affect the amount you get in Universal Credit.

But unlike the other benefits you will not get an extra top-up if you receive PIP and Universal Credit at the same time.

You will need to make a claim for both benefits separately.

To check whether you are entitled to any benefits use the calculator on the Turn2Us website.

Citizens Advice can help you check if you are eligible to claim PIP and other benefits.

Visit your local centre for more information.

What other freebies can I get on PIP?

There are several other discounts and exemptions you can get if you claim PIP, including free prescriptions and capped water bills.

You could apply for a blue badge, which will make you exempt from certain parking restrictions and will give you access to designated parking spaces.

To apply visit the Government website or contact your local council.

If you have a condition which requires you to use lots of water then you could get capped bills.

You will need to be on a water meter to be eligible.

Every supplier has their own scheme so get in touch with them to see if any support is available.

You may be able to get a council tax discount if you receive the daily living or mobility part of PIP.

Get in touch with your local council to find out whether you are entitled to a discount.

If your disability requires you to make changes to your home then you may be able to apply for a disabled facilities grant.

You will need to be assessed to check whether you are eligible as not everyone who receives PIP can apply.

Visit the government website to apply.

You may also be able to claim free prescriptions, depending on your medical condition.

Not all conditions qualify so check the NHS website for more information.

Contact your local council to see whether you qualify for a disabled person’s bus pass.

These are distributed by your local council as part of the English National Concessionary Travel Scheme.

If you receive the mobility element of PIP at the standard rate then you can get a 50% reduction on any vehicle tax you pay.

The vehicle on which you receive the discount must be registered in the disabled person’s name.

You can claim the discount when you apply for vehicle tax.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

MORE than a million benefits claimants with disabilities are set to lose out on the Winter Fuel Payment this year.

The cash, worth up to £300, is being dished out to people on certain means-tested benefits.

1

Cuts made by Chancellor Rachel Reeves mean that only households claiming pension credit and a handful of other benefits are now eligible.

And now a fresh report has been published by the Social Security Advisory Committee looking at the impact of the Chancellor’s decision to change the eligibility criteria.

The move will reduce the number of people who receive a Winter Fuel Payment in England and Wales from 10.8million to just 1.5million.

The most recent available data from May 2023 shows that 2.6million State Pension recipients claim Attendance Allowance (AA), Disability Living Allowance (DLA) and Personal Independence Payment (PIP).

According to the report, at the same time more than half of Pension Credit claimants were also in receipt those three benefits.

While the committee found that people with a disability will be disproportionately likely to get the Winter Fuel Payment this year, the Department estimates that around 1.6million people with a disability will lose entitlement to the cash.

The report reads: “We consider it essential that the Department urgently reviews its current Pension Credit take-up campaign to ensure those receiving Attendance Allowance, Disability Living Allowance and Personal Independence Payment are sufficiently engaged and aware of the options available to them.”

It’s important to note that claiming Pension Credit will not affect your cash from other benefits like PIP, DLA and Attendance Allowance.

James Taylor, Scope’s executive director of strategy and social change, said the charity is concerned by the government’s decision on the winter fuel payment, which it says “will make life harder for older disabled people”.

He said: “While some disabled pensioners receive pension credit, there are an alarming number who will miss out this winter.

“We’d urge anyone who thinks they could be eligible to apply, or to get in touch with our helpline for advice.

“We desperately need a longer-term solution for the eye-watering energy costs many disabled people face, which is why we’re calling for the government to bring in discounted bills for disabled households.”

What can you get?

Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner – this is known as “guarantee credit”.

If your income is lower than this, you’re very likely to be eligible for the benefit.

However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

You could get an extra £81.50 a week if you have a disability or claim any of the following:

• Attendance allowance
• The middle or highest rate from the care component of disability living allowance (DLA)
• The daily living component of personal independence payment (PIP)
• Armed forces independence payment
• The daily living component of adult disability payment (ADP) at the standard or enhanced rate.

You could get the “savings credit” part of pension credit if both of the following apply:

• You reached State Pension age before April 6, 2016
• You saved some money for retirement, for example, a personal or workplace pension

This part of pension credit is worth £17.01 for single people or £19.04 for couples.

Pension credit opens the door to other support, including housing benefits, cost of living payments, council tax reductions and the winter fuel payment.

Claims for pension credit also open doors to a number of freebies and discounts.

For example, pension credit claimants over 75 qualify for a free TV licence worth up to £169.50 a year.

Claims for the benefit also provide eligibility to £25 a week cold weather payments and the £150 warm home discount.

We have a guide on all the state pension freebies and discounts you can get.

If you’re not sure if you will be able to get Pension Credit, you can use our handy tool to check what benefits you’re eligible for.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories