Earlier this month, Rachel Reeves said more people would qualify for Winter Fuel Payments – and now, more details of the changes and who will be eligible have been revealed
Millions more pensioners will receive the Winter Fuel Payment this year after a major change to the eligibility criteria was announced by Labour today.
Winter Fuel Payments used to be awarded to everyone over state pension age – but more than 10 million pensioners lost out on the cash last winter after new rules were introduced that limited who can get them.
The update sparked major backlash from MPs and charities, who warned it would leave many older people in poverty at a time when energy bills are still high.
Earlier this month, Rachel Reeves said more people would qualify for the payments “this winter” – and now, more details of the changes and who will be eligible have been revealed.
What has been announced today?
Under the current rules, you only receive the Winter Fuel Payment in England and Wales if you’re over state pension age and receiving a means-tested benefit, such as Pension Credit.
They used to be universally available to anyone over state pension age, regardless of their income or if they are in receipt of benefits.
But now, the Government has announced that Winter Fuel Payments will be available to anyone over state pension age who has an income of, or below, £35,000 a year.
Labour says this means approximately nine million pensioners will receive Winter Fuel Payments this year. If you earn above £35,000 a year, you will receive the payment – but then you will have to pay it back.
The payment will be automatically recovered by HMRC via PAYE, or through self-assessment return. You can opt out of receiving the payment, with details to be confirmed.
In Scotland, the Winter Fuel Payment has been replaced with a new Pension Age Winter Heating Payment.
What has Rachel Reeves said?
This change will cost around £1.25billion in England and Wales and will save around £450million, subject to certification by the Office for Budget Responsibility, compared to the system of universal Winter Fuel Payments.
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.”
What have charities said?
Independent Age Chief Executive Joanna Elson CBE said: “We are pleased that the UK Government has listened to the voices of older people on a low income and reconsidered what was an incredibly damaging change to the Winter Fuel Payment.
“By widening the eligibility criteria, more older people in financial hardship will now receive this vital lifeline in time for winter. Our helpline receives thousands of calls from older people making drastic cutbacks just to get by and the changes to the Winter Fuel Payment made this worse.
“For millions living on low incomes, the entitlement supports them to turn their heating on and stock up on food during the colder months. While the changes to the Winter Fuel Payment are positive, they are not a silver bullet that will end pensioner poverty.
“Around two million older people still live in poverty, and measures must be taken to ensure the long-term financial security of all people in later life.
“There needs to be a cross-party consensus on the adequate income needed in later life to avoid financial hardship. Once this is established, every older person should be supported to receive this amount. Nobody should have to live in poverty as they age.”
How much are Winter Fuel Payments worth?
Winter Fuel Payments are worth £200 for eligible households, or £300 for eligible households with someone aged over 80. Your eligibility will be based on your age by the end of the qualifying week.
The qualifying week changes every year, but for winter 2025/26, the qualifying week will be September 15 to September 21, 2025.
How do I claim Winter Fuel Payments?
Winter Fuel Payments are paid automatically – this means you should not need to apply for the cash. It will be paid directly into your bank account, normally from November, with most people paid by January.
Payments can be paid all the way up until the following March. As we’ve mentioned above, if you earn above £35,000 a year, then you will have to pay the money back.
Winter Fuel Payments are tax-free payment and do not affect any benefits you may receive.
Who isn’t eligible for Winter Fuel Payments?
For the last round of Winter Fuel Payments, you weren’t eligible if you:
- Were in hospital getting free treatment for more than a year
- Were in prison during the qualifying week
- Were living in a care home during the qualifying week
You also weren’t eligible if you lived in a care home for more than 13 weeks, including the qualifying week. Labour has not released any further details on whether this eligibility will still apply for this year.
