DWP Reveals Which Group Won’t See £300 Winter Fuel Payment Reinstated Under New Rules
In a significant policy reversal, millions of pensioners in the UK are set to receive a Winter Fuel Payment worth up to £300 later this year.
The government confirmed on Monday, June 9, that individuals aged above the state pension age with an income of £35,000 or less will qualify for the support payment.
This move comes after public backlash over the decision to means-test winter fuel payments in 2024, which had dramatically reduced the number of recipients from 11.4 million to just 1.5 million.
Background: What Changed in 2024/25?
Until recently, Winter Fuel Payments were issued automatically to all pensioners, regardless of income. However, the Labour-led government, following their electoral victory, shifted to a means-tested system in an effort to cut public spending.
This controversial decision, limiting payments only to those on Pension Credit or other benefits, was widely criticized. Many believed it unfairly impacted vulnerable retirees and contributed to Labour’s poor showing in the local elections.
Partial U-Turn Brings Back Broader Support
Earlier in the year, the government hinted at a partial reversal, but no concrete details were provided until now. With the latest announcement, the government has expanded eligibility once again — albeit not universally.
As of the update, approximately nine million pensioners in England and Wales will receive the Winter Fuel Payment under the new income-based threshold.
The government estimates the move will cost around £1.25 billion, but it plans to recoup the cost by recovering payments from higher-income pensioners through the HMRC system.
New Eligibility Criteria for Winter Fuel Payment 2025
Under the revised rules:
- Pensioners with a total annual income of £35,000 or less will automatically receive the Winter Fuel Payment.
- No application is required — qualifying individuals will be paid automatically.
- Higher-income pensioners (earning above £35,000) who receive the payment will have the amount recovered automatically via PAYE or self-assessment.
- Pensioners who prefer not to receive the payment will have the option to opt out (further guidance to follow).
| Criteria | Details |
|---|---|
| Eligibility Income Cap | £35,000 or less |
| Payment Amount | £200 per household; £300 if 80+ |
| Estimated Eligible Pensioners | 9 million in England and Wales |
| Automatic Recovery for Higher Earners | Through PAYE or self-assessment |
| Total Scheme Cost | £1.25 billion |
| Estimated Savings from Means Testing | £450 million |
How Will This Be Funded?
To remain within fiscal rules, the Chancellor stated the measure would be incorporated into the upcoming OBR (Office for Budget Responsibility) forecast.
There are no plans for permanent borrowing, and future funding decisions will be made during the next budget round.
Triple Lock Still in Place
In addition to the Winter Fuel Payment, more than 12 million pensioners will benefit from the Triple Lock policy, which ensures the State Pension continues to rise. As a result, pensions are projected to increase by up to £1,900 during the current Parliament.
Chancellor’s Statement on Fairness and Support
Chancellor Rachel Reeves emphasized the balance between fairness and fiscal responsibility:
“Expanding the Winter Fuel Payment ensures no low-income pensioner is left behind, while still targeting those who need support the most. This change will allow over three-quarters of pensioners in England and Wales to receive the payment this winter.”
The UK government’s revised Winter Fuel Payment policy is a significant step in supporting pensioners facing rising energy costs.
With a clear income threshold of £35,000, the payment will reach millions more households without the need for manual applications.
While higher earners will see the funds reclaimed, the system ensures that support is fairly distributed and reaches those who need it most, automatically.
FAQs
Who qualifies for the Winter Fuel Payment under the new rules?
Pensioners living in England and Wales with an annual income of £35,000 or less will receive the payment automatically. Those above the threshold will have any received payments reclaimed.
Do I need to apply for the payment?
No application is necessary. The payment will be issued automatically to eligible pensioners, with recovery for higher earners handled via HMRC.
Can I opt out of receiving the payment?
Yes, the government has stated that an opt-out mechanism will be made available for pensioners who prefer not to receive the Winter Fuel Payment. Further details are expected soon.
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