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The Department for Work and Pensions (DWP) has recently addressed concerns regarding the missed Winter Fuel Payments of 2024, confirming plans to provide a double payment to eligible recipients.
This follows an inquiry made in Parliament by Conservative Party MP Andrew Snowden on June 9, 2025.
Snowden had asked if the government would consider compensating those who were eligible for Winter Fuel Payments in 2025 but did not receive them in 2024.
In response, Labour MP Torsten Bell provided an update on the new payment structure, which aims to provide a £300 allowance for those households who were left out in 2024. Here’s a breakdown of the new measures and what they mean for UK households.
Who Qualifies for the Winter Fuel Payment in 2025?
The Winter Fuel Payment is an annual government initiative designed to help pensioners with the extra costs of heating during the colder months. For 2025, the payment will apply to those who:
- Are aged 65 or over by 24 September 2025.
- Earn below £35,000 in taxable income.
According to the new changes, individuals in households with someone aged 80 or above will receive a higher payment, as explained by Bell.
| Eligibility Criteria | Payment Amount |
|---|---|
| Household with someone of State Pension age | £200 |
| Household with someone aged 80 or over | £300 |
The DWP has made it clear that for people earning over £35,000 a year, the Winter Fuel Payment will be recouped through HMRC. This adjustment aims to reduce unnecessary expenditure by ensuring payments are targeted at those in need.
What Has Changed Since Last Year?
In the winter of 2024, many eligible pensioners missed out on the Winter Fuel Payment due to stricter means-testing and adjustments to income thresholds.
The DWP has acknowledged the complaints and is now taking action to ensure that households who missed the payment in 2024 will receive a double allowance in 2025.
The key change is the £35,000 income threshold, which is set significantly higher than before, making the payment accessible to a larger portion of the population.
As a result, about 9 million pensioners in England and Wales will benefit from the payment, ensuring that those in lower income brackets will receive much-needed assistance.
Cost and Funding of the New System
The new system is expected to cost around £1.25 billion in England and Wales, which is higher than the previous system, though it is considered more cost-effective due to its means-testing approach.
The DWP estimates that it will save the government around £450 million annually, compared to the previous universal payment system.
Bell further added that these changes would be fully funded during the autumn Budget 2025 to ensure the initiative aligns with government fiscal rules.
However, decisions regarding the payment structure in Scotland and Northern Ireland will remain in the hands of their devolved administrations.
Why is the DWP Making These Changes?
The main reason behind these changes is to better target resources and provide financial relief to those who truly need it.
By adjusting the income thresholds and ensuring that over three-quarters of pensioners benefit from the Winter Fuel Payment, the government aims to reduce pensioner poverty and ensure that the funds reach those most at risk of struggling during the winter months.
In addition, the new means-test system is designed to better align with average earnings and reflect the real financial situations of pensioners in the UK.
The government hopes that these changes will mitigate the impact of winter fuel costs on vulnerable groups and prevent further inequalities.
The DWP’s decision to pay two Winter Fuel Payments to those who missed out last year is a positive step in addressing concerns about pensioner poverty and winter fuel costs.
With more pensioners benefiting in 2025, this adjustment ensures that those who need support the most receive it during the colder months.
FAQs
Who is eligible for the Winter Fuel Payment in 2025?
To qualify, you must be aged 65 or over and have an income of £35,000 or below. Households with someone aged 80 or above will receive £300.
Why did some pensioners miss out on the Winter Fuel Payment in 2024?
In 2024, stricter means-testing and income thresholds led to many eligible pensioners missing out on the payment. This year, the DWP has announced a double payment to compensate for this.
How much will the new system cost the government?
The new system is expected to cost around £1.25 billion in England and Wales. However, it is projected to save the government £450 million annually due to its means-testing approach.