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What is the winter fuel payment worth and who will get it? | What is the winter fuel payment worth and who will get it? |
(3 months later) | |
About nine million pensioners will get the winter fuel payment this year, following a government U-turn over eligibility. | |
Ministers had been criticised for the 2024 decision to limit the payment to those receiving pension credit or another means-tested benefit, which meant more than nine million older people missed out. | |
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. | 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 are the rules changing again? | 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 only 1.3 million pensioners received the payment during winter 2024-25, down from about 11 million in previous years. | |
In areas with a higher proportion of low-income pensioners, many did still receive the payment. | |
For example, in the Tower Hamlets area of London, some 49% of pensioners received it, whereas in Hart, in Hampshire, and Wokingham, in Berkshire, only 5% did, compared with an England and Wales average of 13%. | |
Several charities, unions, and MPs criticised the government's 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 which meant 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 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". | 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 them | Labour hopes to put winter fuel misstep behind them |
Millionaires shouldn't get winter fuel cash, minister says | Millionaires shouldn't get winter fuel cash, minister says |
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 and how will it be paid in England and Wales? |
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. | 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. |
In winter 2025, pensioners in England and Wales will get the payment automatically. The money is usually paid in November or December. | |
Households in England and Wales which do not receive an income-related benefit such as Pension Credit will share the payment. | Households in England and Wales which do not receive an income-related benefit such as Pension Credit will share the payment. |
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. |
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 is in each 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. | 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. |
How much is the state pension worth, and what is the triple lock? | |
What is happening to winter fuel payments in Northern Ireland and Scotland? | What is happening to winter fuel payments in Northern Ireland and Scotland? |
In Scotland, the government had already planned to introduced a new winter heating payment "for every single Scottish pensioner" before winter 2025. | 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. | 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. | 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. |
In Northern Ireland, Communities Minister Gordon Lyons said 86% of pensioners would be eligible for the winter fuel payment this year - around 288,000 people. | |
Lyons had previously secured £17m from Stormont to provide a £100 one-off payment for those affected by the cut in winter 2024/2025. | |
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 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. | 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 whether you qualify 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 can I check if I'm eligible for other benefits? | How can I check if I'm eligible for other benefits? |
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. | 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. |
Independent benefits calculators are 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. |