More than nine million pensioners are finally set to receive Winter Fuel Payments again this year after a major reversal by Chancellor Rachel Reeves. The change means anyone over state pension age earning £35,000 or less will get up to £300 to help stay warm through the colder months.
This U-turn comes after months of mounting pressure and a campaign led by the Express calling for the payments to be brought back. The decision is expected to cost around £1.25 billion across England and Wales, and while it’s not a full return to the old system, it’s a significant step, reported the Express.
Rachel Reeves admitted the original move to cut the payments was tough but said it had been necessary due to the state of the public finances left behind by the previous government. “It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone, including the wealthiest,” she explained.
She added, “But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.”
Technically, every pensioner will get the payment again, but for around 1.8 million of them earning over £35,000, the money will be claimed back automatically through the tax system. There’s no paperwork or forms needed — payments will land automatically, and if you’re over the income limit, the money will simply be recovered by HMRC through PAYE or Self-Assessment.
Pensioners can also choose to opt out completely if they don’t want to receive the money, with more details on that to come. The current means-testing that still applies is expected to save around £450 million compared to the original universal system.
The original decision to means-test the payment, limiting it only to those on Pension Credit, sparked outrage. Critics said it left millions of older people facing the impossible choice between heating their homes or buying food. The outcry led to Prime Minister Sir Keir Starmer announcing a change last month, and now the details are finally clear.
Dennis Reed, Director of Silver Voices, who helped lead the charge to get the payments back, said: “This is fantastic news for older people in the UK. The most important aspect of the U-turn is that the payment will be sent automatically to all pensioners, without the need to put in a claim.”
Labour MP Rachael Maskell, who had opposed the original cuts, welcomed the decision but warned that rising energy costs meant further action might still be needed. “Energy bills have risen by £281, so it is clear that more needs to be done to ensure that older people don’t face fuel poverty this winter,” she said.
Others echoed the need for long-term support, not just a quick fix. Organisations like Independent Age and the Centre for Ageing Better called the new approach a step in the right direction, but stressed that pensioners should never have been put in this position in the first place.
For now, though, millions of older people can breathe a sigh of relief as the payments return just in time for the winter months.
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