More pensioners will receive the Winter Fuel Payment this year
More pensioners will receive the Winter Fuel Payment this year (Image: PA)
Earlier this week the government announced a major U-turn about Winter Fuel Payments. Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will now benefit from a Winter Fuel Payment this winter. The increased threshold means no lower or middle-income pensioners will miss out.
Nine million pensioners are set to receive Winter Fuel Payments this winter. The government announcement means that the vast majority of pensioners in England and Wales will now receive the payment. Information on Gov.uk says “support will continue to be targeted, with pensioners above this threshold having the payment automatically recovered or able to opt out.”
This change will cost around £1.25bn in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of universal Winter Fuel Payments.
Pensioners do not need to take action as they will automatically receive the payment this winter, for those who have incomes above the threshold it will be recovered by HMRC. No one will need to register with HMRC for this or take any further action.
The amount people receive from the Winter Fuel Payment is £200 per household, or £300 per household where there is someone over 80. For winter 2025/26, the qualifying week will be September 15 to 21 2025. A person needs to have reached State Pension age by the end of the qualifying week to be eligible.
People born on or before September 21 1959 will qualify providing their income is £35,000 per year or less. The £35,000 threshold applies to you as an individual and does not include your partner’s income. The payment you receive will be recovered by HMRC via PAYE or Self-Assessment if your taxable income is over £35,000.
Payments will be made to the main claimant who is receiving a means-tested benefit such as Pension Credit. If there is no means-tested benefit in payment, a shared payment will be made to a couple. DWP will develop a system to allow people to opt out from receiving the Winter Fuel Payment removing the need for HMRC to recover the payment.
Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.
Further advice about the payment on the government website, states: “Payments will be better targeted than before 2024-25 when they were previously paid to all pensioners regardless of their income, meaning those on lower and middle incomes will still receive the help they need, ensuring fairness for both pensioners and taxpayers.”
As of winter 2024/25, Winter Fuel Payments were restricted in England and Wales to pensioner households receiving Pension Credit or certain other income-related benefits.
When the Winter Fuel Payment changes were announced this week, Chancellor of the Exchequer Rachel Reeves said: “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government.
“It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.”