How much is the winter fuel payment and who will get it?

Chancellor Rachel Reeves has confirmed that more people will get the next winter fuel payment after a widely-expected U-turn over eligibility.

The government was criticised for its decision in 2024 to limit the payment to those receiving pension credit or another means-tested benefit, which meant millions of older people missed out.

Reeves has now partially reversed this policy, which means that 75% of pensioners in England and Wales will receive the allowance this year.

The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year.

But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit.

The changes meant that more than 10 million pensioners did not receive a winter fuel payment in 2024.

Several charities, unions, and MPs criticised the decision.

They expressed concern about the number of older people living on a relatively small income who would miss out, as well as those who do not claim pension credit despite qualifying for it.

Some Labour MPs blamed the policy for the party’s losses in the May local elections and the Runcorn and Helsby by-election.

After much speculation, Reeves announced a U-turn in June so winter fuel payments will now go to around nine million pensioners in England and Wales, with only two million missing out.

She added that the government would “continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest”.

Pensioners in England and Wales with annual income of £35,000 or below will get the payment.

The winter fuel payment is worth £200 for people of state pension age up to 79-years-old. People aged 80 or older will receive £300.

For households in England and Wales not receiving an income-related benefit such as Pension Credit, a shared payment will be made. For example, a couple each aged under 80 will be paid £100 per person.

It is not yet clear if Northern Ireland will also reverse means-based winter fuel payments. Last year, Northern Ireland followed Westminister and made cuts to the allowance.

Communities Minister Gordon Lyons previously said funding constraints meant the Stormont government also had to change its rules.

He later said affected pensioners would receive of one-off payment of £100 to help with heating costs.

In Scotland, the government has already announced plans for a new winter heating payment “for every single Scottish pensioner” to be introduced ahead of winter 2025.

Pensioners in Scotland in receipt of qualifying benefits, such as Pension Credit, will receive payments of £200 or £300 depending on their age, while other households will receive £100. Again this could now be reconsidered.

You don’t have to do anything.

The government says that eligible pensioners in England and Wales will automatically receive the payment this winter. It is usually paid in November or December.

For those above the state pension age who have a taxable yearly income above £35,000, they will receive the winter fuel payment but it will be clawed back through higher tax bills. This will affect around two million people.

In a household with two eligible residents, if one earns more than £35,000 and the other earns less than that, the higher-income pensioner will not receive anything and the lower-income pensioner will receive half the payment.

In order to work out who you’re in a household with, the Department for Work and Pensions cross-references data held in the benefits system.

This includes the state pension, pension credit and the Attendance Allowance which is then matched with your address.

Although the winter fuel payment is paid automatically, without a direct claim, the vast majority of those eligible in winter 2024 only received the money if they had already registered to receive pension credit.

This is a state pension top-up, which itself is worth thousands of pounds a year, and can be a gateway to other financial support, including a reduction in council tax, a free TV licence for those aged over 75, or help with NHS costs.

However, despite regular campaigns from the government encouraging take-up – and an increase in claims after the July 2024 announcement – more than half a million eligible pensioners still fail to claim it.

You could be eligible for Pension Credit if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account.

You can check your eligibility via the government’s online calculator.

Information is also available about how to make a claim.