Last year, the Labour government means-tested the Winter Fuel Payment which meant that only certain pensioners over the age of 66 would receive the £300 payment, rather than all pensioners
Keir Starmer indicated that a potential U-turn in Labour’s cut to the Winter Fuel Payment could be on the horizon during PMQs today.
The Prime Minister told the Commons that he wanted to “ensure as we go forward more pensioners are eligible for Winter Fuel Payments”. The Department for Work and Pensions (DWP) payment is worth £300 and is paid to pensioner households between October and March. The aim of the money is to help with the extra costs of heating the home over the winter months.
It is believed that the Government is considering a rethink of the £11,500 cut-off for the allowance, which would allow more people to get the money. Keir Starmer said the decision on this, however, was “as part of a fiscal event” so any changes would only come after a Spending Review.
He told MPs: “We all know the economy was left in absolute mess by the Tories. We had to stabilise the economy with tough decisions but the right decisions. Because of those decisions it is beginning to improve.”
He added: “I recognise people are still feeling the pressure of the cost of living crisis including pensioners, and as the economy improves we want to make sure people feel those improvements as their lives go forward. That is why we want to ensure as we go forward more pensioners are eligible for winter fuel payments.
“As you would expect we will only make sure we make decisions we can afford. That is why we will look at that as part of a fiscal event.” This means nothing has changed today.
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What happened to the Winter Fuel Payment?
Last year, the Labour government means-tested the Winter Fuel Payment. This meant that only certain pensioners over the age of 66 would receive the money, rather than all pensioners. The move saw over nine million pensioners in the UK lose the extra cash last winter.
Labour faced severe backlash at the time, which has continued to follow them. Legal challenges have been raised against the government for the move, with charities warning that it would push more older Brits into poverty.
Research conducted by Unite Union found that over two-thirds of its retired members had to turn their heating down last winter, a third were taking fewer baths or showers, and 16% had to cut back on hot meals due to the increased costs of trying to stay warm. The axing of the benefit was also linked to the rise in Reform Councillors in the recent elections.
Who is eligible for the Winter Fuel Payment?
Under the updated rules, you are eligible for the Winter Fuel Payment if you are over the state pension age of 66 and claiming one of the following benefits during the qualifying week:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
- Universal Credit
The DWP has not confirmed what the qualifying week for the 2025-26 payments yet, however it is usually during September.
.It is possible to still be entitled to a Winter Fuel Payment even if you weren’t claiming one of these benefits during the qualifying week. As Pension Credit can be backdated by three months, low-income pensioners can claim it at a later date to coincide with the qualifying week. If you are eligible, you will receive the payment automatically
If you live abroad, you need to make a claim for a Winter Fuel Payment, as you do not get it automatically. You must have moved to an eligible EEA country or Switzerland before December 31, 2020 and be covered by the Withdrawal Agreement, to get the payment.
You must also have a genuine and sufficient link to the UK and be claiming a “means-tested benefit” in the country where you live.
You are not eligible for the Winer Fuel Payment if you’ve been in hospital getting free treatment for more than a year, if you needed permission to enter the UK and your granted leave says that you cannot claim public funds, or if you are in prison for the whole of the qualifying week.
What has been announced today for the Winter Fuel Payment?
As mentioned earlier, nothing has been officially confirmed or announced today. This means nothing has officially changed. All that has been confirmed that is that Starmer wants more pensioners to be eligible for the support payment this winter.
Jon Greer, head of retirement policy at Quilter said the indication from the Prime Minister today marked a “notable shift in tone”. He said: “The original decision to restrict the payment to pensioners receiving pension credit may have saved the Treasury money, but it has created confusion and left many vulnerable people behind.
“While a full reversal seems unlikely, there is speculation that the income threshold could be raised from around £11,500. That would allow more pensioners to qualify while retaining some element of means-testing.
“However, if Pension Credit is no longer used as the mechanism, the government will need to establish a new system to determine eligibility. It must be simple, effective, and avoid excluding those in genuine need through red tape or lack of awareness.”
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