Martin Lewis warns 'desperate' state pensioners 'can't replace' £300 Winter Fuel Payment

Money expert Martin Lewis has issued a warning to state pensioners this winter facing a 'desperate situation' because of the Winter Fuel Payment cut.

Martin this week released his latest instalment of The Martin Lewis Podcast on Spotify and BBC Sounds on which he took listeners through the vagaries of the latest energy price cap, which increased by 10 percent on Tuesday thanks to Ofgem.

And now in a winter where state pensioners will lose their £300 Winter Fuel Payment by default as well, Martin outlined that he has 'real concerns' which the government is 'not answering' and that many will end up in a 'desperate situation' as a result.

Martin said that those who are on low incomes should be applying for Pension Credit, which will not only top up your income if you have under £11,400 a year as a pensioner, but will also make you eligible for the £300 Winter Fuel Payment.

But many still have not done so, and the people not claiming are also likely to still be on the more expensive variable energy tariff too.

He said: "The real concern and which the government is not answering, there are 880,000 people who are eligible for Pension Credit and not claiming Pension Credit.

"Right now there are applications at the rate of 20,000 a month which means we're barely touching the side.

"I have been yelling about Pension Credit for a decade. And probably the loudest voice that has been doing that across the board.

"We will have 700,000 people on the lowest incomes, on incomes so low that government thinks should be getting the winter fuel payment, who will not be getting the winter fuel payment, and they will be in a desperate situation.

"They are also exactly the type of people who will not be switching to cut the price of their energy bills and I find that very difficult."

Martin added that anyone who is vulnerable should make sure they are on the Priority Services Register, which means they can't cut you off - you call up or do it online.

He added that you should also talk to your energy firm or local council who might be able to give you a cost of living payment from the Household Support Fund.

But Martin added: "The big picture is, there isn't anything to fill the gap of the Winter Fuel Payment. There are some schemes out there that will help a bit. The cost of energy bills, everyone was saying, blooming companies they're all so greedy.

"It's the regulator which sets the price cap, this isn't companies putting the price up, this is the regulator increasing the cap, this is regulated based on wholesale rates and that comes from the prior government saying it wanted a price cap.

"Which has changed the way the structure of our system works and it's partly done to make sure these energy companies hedge ahead to make sure we have energy security.

"The whole structure of our energy market is broken. To take away the Winter Fuel Payment from our very poorest pensioners, even the ones the government thinks should get the Winter Fuel Payment, there is nothing in the market that will fix that gap and I find it difficult that we've chosen a means testing that in my view is too tight, and administratively so poorly done that this is a critically underclaimed benefit, and therefore we are doing this with full knowledge that hundreds of thousands of the very poorest pensioners, under £11,400 of income, will not get this payment, and that's quite difficult."