Winter Fuel Payments will now be available to all state pensioners in England and Wales who earn under £35,000 a year – and Martin Lewis has published his instant analysis
Martin Lewis has given his reaction to the major Winter Fuel Payment U-turn which was announced today. Winter Fuel Payments have been means-tested since last year, in a move which saw ten million pensioners miss out on the vital support this winter.
In order to get a Winter Fuel Payment last year, you needed to be in receipt of a means-tested benefit such as Pension Credit. However, the Government has now updated the rules ahead of this winter.
Winter Fuel Payments will now be available to all state pensioners in England and Wales who earn under £35,000 a year – if you earn under this amount, you will still get the payment, but you’ll need to pay it back.
Martin Lewis has explained that pensioners will be able to opt out of receiving the payment if they want to, for example, if it is going to be clawed back anyway.
In a new video posted to social media, he said: “When somebody earns over £35,000, it will be clawed back either through PAYE or the self-assessment system.
“They have said this shouldn’t push anybody into self-assessment who wouldn’t be self-assessment anyway, which is very important as self-assessment is complicated, so you don’t want to be forced into the self-assessment system unless it is necessary.
“Crucially, and this is one thing that has surprised me about the announcement, as much of it was flagged in advance as the suspected way they will change it, the way it will work is, even though the payment is a household payment, the tax clawback is an individual tax clawback.
“Let me give you an example, you’ve got a household that is due to get £300 with two state pensioners in. That £300 for the clawback is treated as £150 and £150.
“So if this person earns over £35,000, they lose, if this person earns under £35,000, they keep it – they still get £150. If both of them earn over £35,000, they both lose it, if both of them earn under £35,000, they both keep it.”
Winter Fuel Payments are worth £200 for eligible households, or £300 for eligible households with someone aged over 80. Your eligibility will be based on your age by the end of the qualifying week.
The qualifying week changes every year, but for winter 2025/26, the qualifying week will be September 15 to September 21, 2025. There are different Winter Fuel Payment systems in Scotland and Northern Ireland.
Rachel 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.”