Treasury Expanding Access To Winter Fuel Allowance For Pensioners
Chancellor Rachel Reeves is expanding the criteria for pensioners to get the winter fuel allowance payment this winter (Alamy)
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The government has announced the eligibility for pensioners' winter fuel allowance will be expanded to include those with incomes of £35,000 or below.
This change will mean that more than 9m pensioners in England and Wales will receive winter fuel payments this winter.
Chancellor Rachel Reeves announced in the Autumn Budget last year that winter fuel allowance payments – worth up to £300 to help with energy bills during the coldest months – would be means tested and only given to those on pension credit.
In 2024, this meant 10m fewer pensioners received the money, sparking widespread backlash among charities, some voters, and Labour MPs themselves.
The government had previously confirmed it would change the threshold, after many Labour MPs complained that the planned cuts went too far, warning the government that it had triggered a strong negative reaction from voters ahead of May's local elections.
The latest change will mean that more than three-quarters of pensioners will qualify for the payment, and the process for payment will also change this winter.
The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically to all pensioners, with HMRC then recovering the money from those whose incomes are above the new threshold. Pensioners can also choose to opt out of the payment themselves.
Officials have estimated that around 2m pensioners have incomes above £35,000 and will therefore have the payments reclaimed.
Reeves said in a statement that it was "right" to continue to means-test the payment so that it is "targeted and fair".
“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out," she said.
"This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.”
The government will set out how it will fund the change in the Autumn, with a No10 spokesperson saying on Monday that the change had been announced now to give pensioners "clarity" well ahead of winter.
The spokesperson added: "We recognise that people are still feeling under pressure because of the cost-of-living crisis, including pensioners.
"And so as the economy improves, we want to make sure that more people feel those improvements in their everyday lives. That's why we're acting to ensure that more pensioners are eligible for payments."
