Limiting the annual payment of up to \u00a3300 to only those in receipt of a qualifying means-tested benefit such as Pension Credit<\/a> or Universal Credit (for mixed age couples), was one of the earliest moves made by the Labour Government when it set out plans to deal with what it called a \u00a322 billion \u2018black hole\u2019 in the public purse left behind by the outgoing Conservative government.<\/p>\n Sir Keir Starmer recently said at Prime Minister\u2019s Questions<\/a> that he wants to restore Winter Fuel Payments to \u201cmore pensioners,\u201d claiming the UK\u2019s improving economic prospects could allow for the move at the next \u201cfiscal event\u201d.<\/p>\n READ MORE: Pensioners in Scotland to get winter heating payment of up to \u00a3305 by specific date this year<\/a>READ MORE: Up to \u00a3374 one-off payments for people over State Pension age due this year<\/a><\/p>\n Many in Westminster took the PM’s comments to mean the Budget in the Autumn, but Ms Rayner suggested it could come sooner during a recent appearance on Sunday Morning With Trevor Phillips on Sky News.<\/p>\n She said: “I think that we\u2019ve got the upcoming Spending Review, and I\u2019m sure that the Chancellor will set it out when we\u2019ve got the opportunity, at the first opportunity, she will set out what we\u2019ll be able to do.\u201d<\/p>\n Asked if this means details on the Winter Fuel Payment will definitely be announced at the Spending Review, Ms Rayner added: \u201cI don\u2019t know, but I hope so.<\/p>\n \u201cI mean, the Prime Minister has announced it, so logically to me that indicates that the Prime Minister wants to do something in this area. And if the Prime Minister wants to do that, I\u2019m sure the Chancellor is going to look at how we can achieve that.\u201d<\/p>\n Ministers are reportedly considering restoring the payment to all but the wealthiest pensioners, according to the Sunday Times, but could face delays rolling it out this winter due to ageing computer systems.<\/p>\n Conservative leader Kemi Badenoch called for the immediate restoration of the Winter Fuel Payment when she appeared on the BBC\u2019s Sunday With Laura Kuenssberg, on May 25.<\/p>\n She said: “We need to restore it right now. We would never have taken the winter fuel (payment) away. We kept it for 14 years – we brought in the Triple Lock – we look after pensioners.\u201d<\/p>\n By contrast, the Scottish Government announced earlier this year that all 1.1 million pensioners living north of the border would receive at least \u00a3100 this winter.<\/p>\n First Minister John Swinney<\/a> confirmed to the Daily Record last month that payments of either \u00a3100, \u00a3203 or \u00a3305 would be issued by St Andrew\u2019s Day on November 30.<\/p>\n Options to reintroduce Winter Fuel PaymentsFull reversal<\/p>\n One option would be a full reversal of the decision to strip the benefit from millions of pensioners.<\/p>\n The decision to make it available only to those who claim pension credit last year meant those claiming Winter Fuel Payment fell by almost 90 per cent and saved around \u00a31.5 billion a year, the Institute for Fiscal Studies (IFS) estimates.<\/p>\n Undoing last year\u2019s policy change would make some 11 million more households eligible and of course wipe out the \u00a31.5 billion in savings.<\/p>\n Create a specific threshold for Winter Fuel Payments<\/p>\n Creating a new threshold and means test would allow households not on Pension Credit to apply directly for Winter Fuel Payments.<\/p>\n Raising it 20 per cent above the Pension Credit threshold would cost around \u00a3100 million and see payments go to around 400,000 more families, according to the Resolution Foundation.<\/p>\n One option would be to model this on Child Benefit by allowing all pensioner households to claim but then require those above a certain income level to pay some back via a self assessment tax return, the IFS notes.<\/p>\n But there is a risk to adopting \u201ca clunky bureaucratic mechanism for what is, ultimately, a relatively small payment\u201d, IFS associate director Tom Waters warned.<\/p>\n Expand entitlement to those who get disability or housing benefits<\/p>\n Some 1.8 million more households could get Winter Fuel Payment at a cost of around \u00a3500 million per year if entitlement is extended to those on disability benefits, the IFS estimates.<\/p>\n However, this would be more complicated to put in place in Scotland, where disability benefits are devolved.<\/p>\n Extending eligibility to include those on housing and disability benefits would give support to 1.3 million more pensioner families at a cost of \u00a3300 million a year, the Resolution Foundation estimates.<\/p>\n This would be an \u201caffordable\u201d and \u201csensible way forward\u201d, chief executive Ruth Curtice said.<\/p>\n Pay Winter Fuel Payments to individuals, not households<\/p>\n One difficulty in allocating the Winter Fuel Payment is that it currently goes to households rather than individuals.<\/p>\n Changing this would mean the UK Government could do a means test on an individual basis and use information that it already records for income tax purposes.<\/p>\n It would see pensioners with a low income but with a high-income spouse get the winter fuel payment.<\/p>\n However, it could also see couples get twice as much winter fuel payment as single people, where at the moment a single person would get the same amount as a couple sharing a household.<\/p>\n Join the conversation on our Money Saving Scotland Facebook group<\/a> for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.<\/p>\n Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here<\/a>.<\/p>\n You can also follow us on X<\/strong> (formerly Twitter) @Recordmoney_<\/a> for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community<\/a>.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1744655292_621_0_DR-MOney.png\")
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