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What is the winter fuel payment, how much is it and who gets it? What is the winter fuel payment worth and who will get it?
(10 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. More people will get the next winter fuel payment after a widely-expected U-turn over eligibility.
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. The government bad been 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.
Reeves has now partially reversed this policy, which means that 75% of pensioners in England and Wales will receive the allowance this year. The reversal means 75% of pensioners in England and Wales will receive the payment in winter 2025, and the rules will also change again in Scotland.
What is the winter fuel payment and how did the rules change? What is the winter fuel payment and how are the rules changing again?
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, 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. After much speculation, Reeves announced a U-turn in June which means winter fuel payments will now go to around nine million pensioners in England and Wales with an annual income of £35,000 or less.
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". She said 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".
Labour hopes to put winter fuel misstep behind themLabour 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? How much is the winter fuel payment worth and how will it be paid in England and Wales?
How much is the winter fuel payment worth? The winter fuel payment is worth £200 for people of state pension age up to 79-years-old. People aged 80 or older receive £300.
Pensioners in England and Wales with annual income of £35,000 or below will get the payment. In winter 2025, pensioners in England and Wales will get the payment automatically. It is usually paid in November or December.
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. Households in England and Wales which do not receive an income-related benefit such as Pension Credit will share 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. 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 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. In order to work out who you're in a household with, the Department for Work and Pensions (DWP) will cross-reference all the data held in the benefits system.
This includes the state pension, pension credit and the Attendance Allowance which is then matched with your address.This includes the state pension, pension credit and the Attendance Allowance which is then matched with your address.
The roughly two million people above state pension age who have a taxable yearly income of more than £35,000 will receive the winter fuel payment but it will be clawed back through higher tax bills.
What is happening to winter fuel payments in Northern Ireland and Scotland?
It is not yet clear if Northern Ireland will also reverse the move to means-based winter fuel payments.
In 2024 Northern Ireland Communities Minister Gordon Lyons said funding constraints meant the Stormont government had to follow Westminster's lead.
He later said affected pensioners would receive a one-off payment of £100 to help with heating costs.
In Scotland, the government had already planned to introduced a new winter heating payment "for every single Scottish pensioner" before winter 2025.
However, Holyrood ministers now plan to match the £35,000 income limit being introduced in England and Wales.
The amount paid may be slightly higher - either £203.40 or £305.10 per household - as, unlike in England and Wales, the payment would be increased in line with inflation.
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 typically 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.
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.
How to check if you can claim a benefit How can I check if I'm eligible for other benefits?
There is a guide to benefits, who qualifies, and what to do if something goes wrong, provided by the independent MoneyHelper website, backed by government The independent MoneyHelper website - which is backed by government - provides a general guide to benefits including details about who qualifies, and what to do if something goes wrong.
Benefits calculators are also run by Policy in Practice and charities Entitledto and Turn2us Independent benefits calculators are run by Policy in Practice and charities Entitledto and Turn2us
You can read more Cost of Living stories here.You can read more Cost of Living stories here.