Martin Lewis offers his verdict on Labour’s winter gas cost U-turn

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Your help makes all of the distinction. Learn extra Cash knowledgeable Martin Lewis has given his verdict on Labour’s determination to partially reverse its modifications to the annual winter gas cost for pensioners.

Chancellor Rachel Reeves has confirmed that whereas the cost will nonetheless not be paid to all pensioners as in earlier years, it is going to be prolonged to excess of final winter.

Round 9 million extra pensioners ought to get the cost because of the change – which means about three quarters of pensioners total at the moment are eligible.

Saying the change, Ms Reeves mentioned: “Focusing on winter gas funds was a troublesome determination, however the suitable determination due to the inheritance we had been left by the earlier authorities.

<img src="https://static.independent.co.uk/2025/06/04/13/31f39027c9dc56d9b166c23efe153af6Y29udGVudHNlYXJjaGFwaSwxNzQ5MTIzODU5-2.80235976.jpg" srcset="https://static.independent.co.uk/2025/06/04/13/31f39027c9dc56d9b166c23efe153af6Y29udGVudHNlYXJjaGFwaSwxNzQ5MTIzODU5-2.80235976.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/06/04/13/31f39027c9dc56d9b166c23efe153af6Y29udGVudHNlYXJjaGFwaSwxNzQ5MTIzODU5-2.80235976.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Rachel Reeves said: “we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out” (Hannah McKay/PA)" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Rachel Reeves mentioned: “we've got now acted to broaden the eligibility of the winter gas cost so no pensioner on a decrease revenue will miss out” (Hannah McKay/PA) (PA Wire) “It's also proper that we proceed to means-test this cost in order that it's focused and truthful, moderately than restoring eligibility to everybody together with the wealthiest.

“However we've got now acted to broaden the eligibility of the winter gas cost so no pensioner on a decrease revenue will miss out.”

The change primarily raises the edge for receiving the cost from £11,600, plus the must be claiming Pension Credit score, to £35,000 with no extra necessities.

Reacting to the information, Mr Lewis mentioned the change is a “very large enchancment”, however highlighted a bit of key data pensioners ought to concentrate on concerning the choice.

Crucially, pensioners with an revenue of over £35,000 will see their winter gas cost “clawed again” by the tax system (until they choose out). However this may carry some barely sophisticated guidelines for households with a couple of pensioner which it could be useful to know.

<img src="https://static.independent.co.uk/2025/04/29/16/44/Martin-Lewis-issues-warning-to-Brits-earning-extra-income-from-side-hustles.jpeg" srcset="https://static.independent.co.uk/2025/04/29/16/44/Martin-Lewis-issues-warning-to-Brits-earning-extra-income-from-side-hustles.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=0%2C68%2C0%2C46&auto=webp 320w, https://static.independent.co.uk/2025/04/29/16/44/Martin-Lewis-issues-warning-to-Brits-earning-extra-income-from-side-hustles.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=0%2C68%2C0%2C46&auto=webp 640w" loading="lazy" alt="Martin Lewis said he is “very grateful to the Chancellor” for Labour’s winter fuel payment U-turn" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Martin Lewis mentioned he's “very grateful to the Chancellor” for Labour’s winter gas cost U-turn (This Morning/ITV) Mr Lewis offers an instance: "You have obtained a family that is because of get £300 with two state pensioners in. That £300 for the clawback is handled as £150 and £150.

“So if this particular person earns over £35,000, they lose it. If this particular person earns underneath £35,000, they maintain it; they nonetheless get £150. If each of them earn over £35,000, they each lose it. And if each of them earn underneath £35,000, they each maintain it.”

This can be a comparatively “good system,” The Cash Saving Knowledgeable founder says, because it means just one pensioner’s revenue gained’t resolve whether or not the complete cost is stored or not.

Mr Lewis additionally mentioned that he's “very grateful to the Chancellor” for the choice, including: “This can be a very large enchancment on what we already had, and it does imply there's nonetheless a way take a look at in place.”

"And many individuals mentioned they do not need millionaires and billionaires to get the Winter Gasoline Fee. Properly, they will not get the Winter Gasoline Fee, they'll both choose out or have it clawed again by the tax system.