Lloyds, Santander and other banks are giving state pensioners up to £200 for free

With millions of state pensioners set to miss out on Winter Fuel Payments this year after changes to eligibility rules, several UK banks are offering customers an enticing cash incentive to switch their accounts - giving away up to £200 for free.

Just weeks ago, the Labour Party government and the Department for Work and Pensions (DWP) announced that households in England and Wales will no longer be entitled to Winter Fuel Payment in 2024/25, unless they receive Pension Credit or certain other means-tested benefits.

These new rules will see the number of pensioners who receive the £300 payment dropping from approximately 10.8 million people, in 7.6 million households, to just 1.5 million individuals in around 1.3 million households across England and Wales.

However, if you switch your bank account now to Lloyds, Nationwide, Santander or NatWest, you can claim free money now which will be deposited into your account within just days.

Lloyds has confirmed that customers who switch to its Club Lloyds account at any time between October 2 and December 10 can receive £200, which they can expect to be deposited within three days of completing the switch.

Nationwide Building Society is also offering a new deal of £175 for customers who switch to its FlexDirect, FlexPlus or FlexAccount current accounts, reports Birmingham Live.

To qualify, you must have at least two direct debits coming out of the account and deposit at least £1,000 in the account yourself within 31 days of making the switch. You'll also need to make a purchase with your debit card, although certain transactions such as gambling will not count towards this requirement.

Meanwhile, for Santander customers, the free money offer applies when switching to either a Santander Edge, Santander Edge Up, Everyday, or Private (v2) current account. To qualify, you must submit a switch request on or after November 4, and before the switcher offer is withdrawn.

The entire process of switching must be finalised within a 60-day period, which includes the closure of the previous account.

Andrea Melville, Santander's director of current accounts, savings and business banking, commented: "We’re excited to roll out our latest switching incentive, giving customers a quick boost to their finances and yet another reason to bank with us.

"Our £150 offer rewards both new and existing customers for making the switch, while our current accounts continue to deliver cashback and competitive rates on savings."

Finally, it's worth noting that NatWest has a £180 switch offer, too.