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What is the winter fuel payment, how much is it and who gets it? What is the winter fuel payment, how much is it and who gets it?
(7 days later)
Millions of pensioners are not getting the winter fuel payment, after the government changed the rules. Chancellor Rachel Reeves has confirmed that more people will get the next winter fuel payment after a widely-expected u-turn over eligibility.
Payments are only going to those who already receive pension credit or other means-tested financial support. The government was criticised for its 2024 decision to limit the payment to those receiving pension credit or another means-tested benefit, which meant millions of older people missed out.
Pension credit tops up the state pension for those on low incomes, and is a gateway to other benefits like the winter fuel payment. Reeves is expected to set out some details about who will qualify in winter 2025 as part of the Spending Review on 11 June, but full details are not expected until the Budget later in the year.
After criticism of the government's limit on the payment, Prime Minister Sir Keir Starmer signalled a partial reversal of the changes but did not provide details. What is the winter fuel payment and how did the rules change?
What is the winter fuel payment and how have the rules changed?
The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year.The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year.
But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit.But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit.
The changes mean that more than 10 million pensioners did not receive a payment in winter 2024. The changes meant that more than 10 million pensioners did not receive a winter fuel payment in 2024.
Several charities, unions, and MPs criticised the decision to means-test the payment. Several charities, unions, and MPs criticised the decision.
They expressed concern about the number of older people living on a relatively small income who will miss out, and those who do not currently claim pension credit despite qualifying for it. They expressed concern about the number of older people living on a relatively small income who would miss out, as well as those who do not claim pension credit despite qualifying for it.
It was also signalled as a source of voters' anger with the government at recent elections. Some Labour MPs blamed the policy for the party's losses in the May local elections and the Runcorn and Helsby by-election.
After much speculation, at the start of June Reeves said: "People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter."
But it is not clear exactly who will qualify under the revised rules or how much it will cost.
PM accepts need for clarity on winter fuel payments
Millionaires shouldn't get winter fuel cash, minister says
What might Rachel Reeves announce in the Spending Review?
How much is the winter fuel payment worth?How much is the winter fuel payment worth?
The winter fuel payment is worth £200 for those on certain benefits and born between 23 September 1944 and 22 September 1958. The winter fuel payment is currently worth £200 for those on certain benefits and born between 23 September 1944 and 22 September 1958.
For those born before 23 September 1944, and on certain benefits, it is worth £300.For those born before 23 September 1944, and on certain benefits, it is worth £300.
If you live with someone, and jointly claim benefits, only one of the couple receives the payment. If a couple live together and jointly claim benefits, only one of them gets the payment.
How is the winter fuel payment linked to pension credit? How was the winter fuel payment linked to pension credit?
Although the winter fuel payment is paid automatically, without a direct claim, the vast majority of those eligible will only receive the money if they have first registered to receive pension credit. Although the winter fuel payment is paid automatically, without a direct claim, the vast majority of those eligible in winter 2024 only received the money if they had already registered to receive pension credit.
This is a state pension top-up, which itself is worth thousands of pounds a year, and can be a gateway to other financial support, including a reduction in council tax, a free TV licence for those aged over 75, or help with NHS costs.This is a state pension top-up, which itself is worth thousands of pounds a year, and can be a gateway to other financial support, including a reduction in council tax, a free TV licence for those aged over 75, or help with NHS costs.
However, an estimated 760,000 eligible pensioners fail to claim it. However, despite regular campaigns from the government encouraging take-up - and an increase in claims after the July 2024 announcement - more than half a million eligible pensioners still fail to claim it.
You could be eligible for pension credit if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account.You could be eligible for pension credit if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account.
Anyone entitled to pension credit for at least one day between 16 and 22 September 2024 received the winter fuel payment last winter.Anyone entitled to pension credit for at least one day between 16 and 22 September 2024 received the winter fuel payment last winter.
Disabled people, those caring for someone, or those with housing costs could still be eligible even if they have additional income or savings. Disabled people, those caring for someone, or those with housing costs could still be eligible even if they had additional income or savings.
You can check your eligibility for pension credit via the government's online calculator. You can check your eligibility via the government's online calculator.
Information is also available on how to make a claim online. Information is also available about how to make a claim.
When is the winter fuel payment made?When is the winter fuel payment made?
The winter fuel payment is usually paid automatically in November or December. Those eligible receive a letter confirming their entitlement.The winter fuel payment is usually paid automatically in November or December. Those eligible receive a letter confirming their entitlement.
Owing to the extra applications, some people had to wait for their claim to be processed. The Department for Work and Pensions said it had deployed 500 additional staff to speed up processing. The volume of extra pension credit applications after the 2024 rule change meant some people had to wait for their payment.
What will the rule change mean for the poorest pensioners? The Department for Work and Pensions (DWP) said it deployed 500 additional staff to speed up processing.
The government estimates 1.9 million pensioners - about 15% - already live in relative poverty. What do the current rules mean for the poorest pensioners?
This means their income is less than 60% of the median. The government estimates 1.9 million pensioners - about 15% - live in relative poverty.
The median income is the amount of money that divides a population into two, with half earning more, and half less. This means their income is less than 60% of the median, which is the amount of money that divides a population into two - with half earning more, and half less.
In November, Work and Pensions Secretary Liz Kendall confirmed the government expected significantly more pensioners to be in relative poverty due to the new rules: In November, Work and Pensions Secretary Liz Kendall confirmed the government expected significantly more pensioners to be in relative poverty due to the 2024 changes:
an extra 50,000 in the years ending March 2025, March 2026 and March 2028an extra 50,000 in the years ending March 2025, March 2026 and March 2028
an extra 100,000 in the years ending March 2027, March 2029 and March 2030an extra 100,000 in the years ending March 2027, March 2029 and March 2030
The annual figures are rounded to the nearest 50,000 and do not take into account any increase in the take-up of pension credit. The figures were rounded to the nearest 50,000 and did not take into account any increase in the take-up of pension credit.
Writing to MPs on the Work and Pensions Select Committee, Kendall said means-testing winter fuel payments "was not a decision this government wanted or expected to take" but it was "right that we target support to those who need it most".Writing to MPs on the Work and Pensions Select Committee, Kendall said means-testing winter fuel payments "was not a decision this government wanted or expected to take" but it was "right that we target support to those who need it most".
Asked about the figures, Starmer said many pensioners would be better off from April 2025, when both the state pension and pension credit increased by 4.1%, under "the triple lock" arrangement.Asked about the figures, Starmer said many pensioners would be better off from April 2025, when both the state pension and pension credit increased by 4.1%, under "the triple lock" arrangement.
Meanwhile the Committee has launched its own inquiry into pensioner poverty – partly prompted by the winter fuel cut. The Committee has since taken evidence as part of its own inquiry into pensioner poverty.
How to check if you can claim a benefitHow to check if you can claim a benefit
There is a guide to benefits, who qualifies, and what to do if something goes wrong, provided by the independent MoneyHelper website, backed by governmentThere is a guide to benefits, who qualifies, and what to do if something goes wrong, provided by the independent MoneyHelper website, backed by government
Benefits calculators are also run by Policy in Practice and charities Entitledto and Turn2usBenefits calculators are also run by Policy in Practice and charities Entitledto and Turn2us
What is happening in Scotland and Northern Ireland?What is happening in Scotland and Northern Ireland?
Northern Ireland Communities Minister Gordon Lyons said funding constraints meant the Stormont government would have to change the rules as well. Northern Ireland Communities Minister Gordon Lyons said funding constraints meant the Stormont government also had to change its rules.
He later said affected pensioners would receive of one-off payment of £100 to help with heating costs.He later said affected pensioners would receive of one-off payment of £100 to help with heating costs.
The Scottish Government has announced plans for a new winter heating payment "for every single Scottish pensioner" to be introduced ahead of winter 2025. The Scottish Government has already announced plans for a new winter heating payment "for every single Scottish pensioner" to be introduced ahead of winter 2025.
Pensioners in Scotland in receipt of qualifying benefits, such as Pension Credit, will receive payments of £200 or £300 depending on their age, while other households will receive £100.Pensioners in Scotland in receipt of qualifying benefits, such as Pension Credit, will receive payments of £200 or £300 depending on their age, while other households will receive £100.
The Holyrood government had already planned to introduce a replacement universal benefit north of the border, but said the financial implications of Labour’s decision had forced it to delay this until late 2025. Holyrood also announced some extra council funding for welfare, as well as additional money for the Warmer Homes Scotland Scheme.
It has also announced some extra welfare funding for councils in the current financial year, as well as additional money for the Warmer Homes Scotland Scheme.
You can read more Cost of Living stories here.You can read more Cost of Living stories here.