SOME nine million pensioners in England and Wales will receive the Winter Fuel Payment this winter, Rachel Reeves has announced in her biggest U-turn as Chancellor.
The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it because anyone with an income of under £35,000 a year will now get the payment automatically.
Those with an income above this threshold will also receive the payment, but it will then be reclaimed from them in tax.
To be eligible for the winter fuel allowance, a person will need to have reached state pension age by the week starting September 15 this year.
Devolved authorities in Scotland and Northern Ireland will each receive a funding uplift so they too can meet the new threshold.
Pensioners who do not want to receive the payment will be able to opt out, according to the Treasury.
The decision to limit the winter fuel payment to only those who claimed pension credit was one of Labour’s first acts in Government, aimed at balancing what was described as a £22 billion “black hole” in the public finances.
This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4m to 1.5m.
But Keir Starmer announced there would be a partial U-turn on the policy in May, after it was thought to have contributed to Labour’s drubbing in the local elections.
The Treasury claims the new arrangement will cost £1.25bn in England and Wales, while means-testing winter fuel will save the taxpayer £450m.
Reeves said: “Targeting winter fuel payments was a tough decision but the right decision because of the inheritance we had been left 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.
“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.”
Some two million pensioners who earn more than £35,000 will see their winter fuel payments clawed back via the taxman, the Treasury estimates.
