Pensioners who are part of a couple will share the payment
Some pensioners will only get £100 under the new rules (Image: Christopher Furlong/Getty Images)
Millions of pensioners who missed out on getting a Winter Fuel Payment last winter will be eligible for the support this year.
The Department for Work and Pensions (DWP) confirmed a major u-turn earlier this month, reinstating the payment to around 9 million pensioners in England and Wales.
Last year, the new Labour government slashed the support, handing out the support payment, worth up to £300, to only those above state pension age who claimed certain benefits. The move was widely criticised by campaigners who argued that the move left millions who were reliant on the extra cash out of pocket.
This year, the government confirmed that eligibility for the payment will no longer be based on whether a pensioner is receiving benefits. Instead, all pensioners who have a taxable income of £35,000 or under will be eligible for the payment this coming winter.
The move means around three-quarters of all state pensioners will be eligible for the payment, according to the government.
The DWP has now confirmed the rules around who is eligible for the Winter Fuel Payment and how much pensioners will get.
Households are entitled to a payment of either £200 or £300 but pensioners who are in a couple may only receive £100 due to the new income threshold.
How much will pensioners get?
This year, Winter Fuel Payments will be made to everyone in England and Wales born before 22 September 1959.
However, anyone who is over the income threshold of £35,000 will have their payment recovered by HMRC through the tax system.
There will also be an option for people to opt out of receiving the payment in the first place.
The amount you get depends on your age and how many people are in your household.
A household is eligible for the higher amount of £300 if it includes someone who is over the age of 80.
Households with people who are above state pension age but younger than 80 will be eligible for the lower amount of £200.
Households are only eligible for one payment, unless they are on an income-related benefit such as Pension Credit. Pensioners who are claiming Pension Credit are entitled to an individual payment, the DWP has confirmed.
In cases where one member of a household is above the income threshold and the other is not, the household will only get part of the payment.
For example, a couple who both fall below the income threshold and are both under 80, with neither receiving Pension Credit, will get a payment of £200.
However, if one person’s income is above the £35,000 threshold, their half of the payment will be clawed back through the tax system. Therefore, the eligible person will get just £100.
The payments are split for couples based on age. So if both people are over 80, the split will be £150 each.
If only one is 80 or over, the older person will get £200 and the younger person will get £100. If both are under 80 the split will be £100 each.