There will be different rules for couples receiving Winter Fuel Payments this winter compared with pensioners living alone, the DWP has confirmed
Payments will be made to people automatically this winter (Image: Getty Images/iStockphoto)
The Department for Work and Pensions (DWP) has confirmed the rules around the Winter Fuel Payment for pensioners who are in a couple and living together.
Nine million pensioners in England and Wales will receive the Winter Fuel Payment from the Department of Work and Pensions (DWP) this winter after a government u-turn, it was announced yesterday, June 11.
The change means eligible pensioners – who have an income of or below £35,000 – will get either £200 or £300 this winter.
It comes after the payments were slashed last year as they became means tested for the first time, with only those on certain benefits receiving the payment. The move essentially lowered the income threshold to just £11,600, according to MoneySavingExpert.
Under the new changes, this year all pensioners with an income of under £35,000 a year will get the payment automatically.
Pensioners with an income above this threshold will also receive the payment but it will then be reclaimed from them in tax. This means if someone earns over £35,000 their share of the household payment will be clawed back either through the PAYE or the self-assessment tax system.
The payments will be made per household, meaning a household with more than one pensioner in will only receive one payment of up to £300. So, for example, two pensioners over the age of 80 living in the same house will get £150 each.
Income is determined on an individual basis rather than on the household income. So, if one pensioner earns above the income threshold, their share of the payment will be reclaimed through the tax system, but their partner will still get their share as long as their individual income is below the threshold.
Martin Lewis said this was a “good system compared to what we thought was going to happen”, having previously believed the threshold would be based on the higher earner’s income.
While most pensioners who are part of a couple will share their payment, MoneySavingExpert points out that there is an exception to this rule.
It explains: “If you’re a couple claiming Pension Credit, there’s no split. You’ll get £200 or £300 (if one of you is 80+) in one lump sum. And the clawback will not affect you, as if you earned enough for the clawback to apply, you wouldn’t be eligible for Pension Credit in the first place.”