Katie Williams
The majority of pensioners will once again receive the Winter Fuel Payment when temperatures drop this year after the government rowed back on its controversial decision to remove the Winter Fuel Payment for millions of people.
The Treasury says nine million pensioners in England and Wales are set to receive the benefit this winter, with payments being targeted at pensioners on lower and middle incomes.
It will be welcome news for retirees unable to keep up with the cost of heating their homes as energy prices remain much higher than they were before the energy crisis in 2022.
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The energy price cap for July to September will fall by 7%, but is forecast to rise slightly in October to December.
However, not all pensioners who previously claimed the Winter Fuel Allowance will be eligible for the payment in 2025.
We take a look at what the Winter Fuel Payment is, and who is eligible to claim it.
What is the Winter Fuel Payment?
The Winter Fuel Payment is an annual tax-free allowance worth up to £300. It aims to help pensioners pay their energy bills during the coldest months of the year, when many fear the consequences of turning the thermostat up.
Pensioners have been eligible for some support on energy bills since 1997, but universal help was removed for millions of pensioners in the 2024 Autumn Budget, when it became means-tested.
Following a significant policy climbdown by Labour, the government announced on 9 April that, while the benefit will remain means-tested, the eligibility criteria will be significantly widened when payments are made in 2025.
In 2025, Winter Fuel Payments will be worth £200 per household, or £300 per household for those over 80.
Who gets the Winter Fuel Payment?
Eligibility is based on a person’s age and place of residence during the qualifying week, which is 15 to 21 September 2025 for this winter's payment.
To receive the Winter Fuel Payment you will now need to meet two criteria:
- You will need to have reached the official state pension age. For the 2025/26 allowance, a person needs to have reached this by 21 September 2025.
- You will also need to have an income of, or below, £35,000 a year to benefit from the Winter Fuel Allowance.
The Treasury says the “vast majority” – over three quarters – of pensioners will meet these criteria and that the threshold is “well above” the income level of pensioners in poverty.
The government says pensioners won’t need to take any action to receive the benefit as they will automatically be paid the allowance. Meanwhile, those with incomes above the threshold will have it automatically recovered by HMRC.
The requirements to claim the benefit are much less stringent than they were in 2024 when pensioners had to be claiming certain other state benefits, such as Pension Credit or Universal Credit.
Chancellor Rachel Reeves said “no pensioner on a lower income will miss out” on the Winter Fuel Payment this year, adding that “over three quarters of pensioners receiving the payment in England and Wales later this winter.”
She added: “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.”
The Treasury sa the policy will now cost £1.25 billion, saving the exchequer £450 million a year by making the benefit means-tested, but at a higher level.
How much is the Winter Fuel Payment and when will you receive it?
If you live alone and qualify for the Winter Fuel Payment but are under 80 years old, you will receive £200. If you are over 80, you will receive £300. The payment is per household, so if you live with someone else and you both qualify, you will only receive one payment. The same age thresholds apply.
If you are eligible for the Winter Fuel Payment, you will receive a letter in October or November telling you how much money you can expect to receive. If you do not receive a letter but think you are eligible for the benefit, you can check whether you need to make a claim using the government website.
Most payments are then made in November or December.
How to claim the Winter Fuel Payment
You should receive the Winter Fuel Payment automatically, if you are the correct age and have an income of, or below, £35,000.
If you meet the criteria then you will not need to complete any extra steps to be given the payment, the Treasury said.
One exception is if you live abroad. In this instance, you will need to claim the payment by post or by phone. Further information including contact details and cut-off dates can be found on the government website.
Keep an eye on your post in October and November for a letter telling you how much Winter Fuel Payment you will get. If you do not receive this but think you should be eligible for the payment, it is possible that something has gone wrong.
You can contact the Winter Fuel Payment Centre if you have any concerns. Contact details can be found on the government website.
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