Changes to winter fuel payment
Millions of people across the UK will no longer be eligible to receive a winter fuel payment of up to £300.
The announcement was made by Chancellor Rachel Reeves following the new government’s spending audit.
As a result, the number of people eligible for the payment will drop from 11.4 million to just 1.5 million*.
What are winter fuel payments?
Winter fuel payments were introduced in 1997 to help pensioners pay their heating bills in colder months.
The number of people eligible to receive these tax-free payments has been rising steadily year-on-year. In 2022/23, annual payments totalled more than £18 million**.
Who was eligible – and what’s changing?
Historically, anyone above state pension age received the payment automatically. The amount they received depended on their individual circumstances but was always between £100 and £300.
But from this year, only pensioners in England and Wales who are in receipt of at least one of these benefits will be eligible:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
- Universal Credit
Pension credit remains one of the most unclaimed benefits in the UK, with around £2 billion going unclaimed last year. To be eligible for pension credit, people need to be above state pension age and have an income less that £218.15 a week or less than £332.95 as a joint weekly income with a partner. However, savings are taken into account.
The amounts that people will receive are not changing:
Born between 23 Sep 1944 and 22 Sep 1958 | Born on or before 22 Sep 1944 | |
Live alone (or none of the people you live with qualify) | £200 | £300 |
Live with someone under 80 who also qualifies | £100 | £200 |
Live with someone 80 or over who also qualifies | £100 | £150 |
Live in a care home | £100 | £150 |
What about Scotland and Northern Ireland?
Governments in Scotland and Northern Ireland will be deciding on their own policies ahead of this winter.
How do people claim winter fuel payments?
The payments have always been automatically applied to those who are eligible – and that won’t change. Anyone eligible should receive a letter in the autumn to tell them how much they should expect to receive. The money will be paid directly into the same account their benefits are paid into in January 2025 at the latest.
People ineligible for winter fuel payments could still be eligible for support from their local council through the Household Support Fund or Cold Weather Payments. Check local council websites for more information.
For money and energy advice local to you, please click here.