This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c4gv632d05lo

The article has changed 15 times. There is an RSS feed of changes available.

Version 12 Version 13
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?
(6 days later)
Chancellor Rachel Reeves has confirmed that more people will get the next winter fuel payment after a widely-expected u-turn over eligibility. Chancellor Rachel Reeves has confirmed that more people will get the next winter fuel payment after a widely-expected U-turn over eligibility.
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. The government was criticised for its decision in 2024 to limit the payment to those receiving pension credit or another means-tested benefit, which meant millions of older people missed out.
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. Reeves has now partially reversed this policy, which means that 75% of pensioners in England and Wales will receive the allowance this year.
What is the winter fuel payment and how did the rules change?What is the winter fuel payment and how did the rules change?
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 meant that more than 10 million pensioners did not receive a winter fuel payment in 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.Several charities, unions, and MPs criticised the decision.
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.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.
Some Labour MPs blamed the policy for the party's losses in the May local elections and the Runcorn and Helsby by-election.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." After much speculation, Reeves announced a U-turn in June so winter fuel payments will now go to around nine million pensioners in England and Wales, with only two million missing out.
But it is not clear exactly who will qualify under the revised rules or how much it will cost. She added that the government would "continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest".
PM accepts need for clarity on winter fuel payments Labour hopes to put winter fuel misstep behind them
Millionaires shouldn't get winter fuel cash, minister saysMillionaires shouldn't get winter fuel cash, minister says
What might Rachel Reeves announce in the Spending Review?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 currently worth £200 for those on certain benefits and born between 23 September 1944 and 22 September 1958. Pensioners in England and Wales with annual income of £35,000 or below will get the payment.
For those born before 23 September 1944, and on certain benefits, it is worth £300. The winter fuel payment is worth £200 for people of state pension age up to 79-years-old. People aged 80 or older will receive £300.
If a couple live together and jointly claim benefits, only one of them gets the payment. For households in England and Wales not receiving an income-related benefit such as Pension Credit, a shared payment will be made. For example, a couple each aged under 80 will be paid £100 per person.
It is not yet clear if Northern Ireland will also reverse means-based winter fuel payments. Last year, Northern Ireland followed Westminister and made cuts to the allowance.
Communities Minister Gordon Lyons previously 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.
In Scotland, the 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. Again this could now be reconsidered.
What do I have to do to get the winter fuel payment?
You don't have to do anything.
The government says that eligible pensioners in England and Wales will automatically receive the payment this winter. It is usually paid in November or December.
For those above the state pension age who have a taxable yearly income above £35,000, they will receive the winter fuel payment but it will be clawed back through higher tax bills. This will affect around two million people.
How will it work for households with more than one pensioner?
In a household with two eligible residents, if one earns more than £35,000 and the other earns less than that, the higher-income pensioner will not receive anything and the lower-income pensioner will receive half the payment.
In order to work out who you're in a household with, the Department for Work and Pensions cross-references data held in the benefits system.
This includes the state pension, pension credit and the Attendance Allowance which is then matched with your address.
How was 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 in winter 2024 only received the money if they had already 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, 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.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.
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 via the government's online calculator.You can check your eligibility via the government's online calculator.
Information is also available about how to make a claim.Information is also available about how to make a claim.
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 volume of extra pension credit applications after the 2024 rule change meant some people had to wait for their payment.
The Department for Work and Pensions (DWP) said it deployed 500 additional staff to speed up processing.
What do the current rules mean for the poorest pensioners?
The government estimates 1.9 million pensioners - about 15% - live in relative poverty.
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 2024 changes:
an 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 2030
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".
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.
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?
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.
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.
Holyrood also announced some extra council funding for welfare, 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.