Millions of pensioners will now get the Winter Fuel Payment this year after changes to the eligibility rules were announced today.
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.
The government controversially means-tested the payment in 2024, drastically reducing the number of people getting the support.
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The Winter Fuel Payment is worth £200 per household, or £300 per household where there is someone over 80.
Chancellor Rachel Reeves defended the “tough” move to target Winter Fuel Payments last year, claiming it was “the right decision because of the inheritance we had been left by the previous government”.
She added: “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.”
Jon Greer, head of retirement policy at Quilter, said the climbdown underlines “how politically and practically difficult it is to unpick long-standing universal benefits like the Winter Fuel Payment”.
He said while restricting payments to those on certain income-related benefits, such as Pension Credit, may have appeared “fiscally responsible”, the government “underestimated both the administrative burden and the strength of feeling such changes provoke among pensioners.”.
Who will get the Winter Fuel Payment in 2025/26?
Those who have reached state pension age in England and Wales and have an income of £35,000 or less per year will be able to get the Winter Fuel Payment this winter.
Eligibility is based on age and place of residence during the qualifying week, which for this winter, will be 15 to 21 September 2025.
The change announced today means lower and middle-income pensioners shouldn’t miss out on the support.
The Treasury estimates the vast majority (over three quarters) of pensioners in England and Wales will now qualify.
People who have annual income of more than £35,000 will either have the payment automatically recovered by HMRC or be able to opt out.
There are around two million people in England and Wales over state pension age who have taxable incomes of more than £35,000.
How to get the Winter Fuel Payment in 2025/26
Pensioners will automatically receive the Winter Fuel Payment this winter, if they are eligible.
HMRC will automatically recover the payment from people with incomes above the threshold.
This will be via PAYE or their self-assessment tax return.
The DWP will develop a system to enable people to opt out of receiving the Winter Fuel Payment, the government said today.
Winter Fuel Payments are transferred in Northern Ireland and the policy area is devolved to Scotland.
The Scottish Government and the Northern Ireland Executive will receive a mechanical uplift in the funding following the change in England and Wales, the Treasury confirmed.
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