Eight million more pensioners to receive Winter Fuel Payment as full details of government's major U-turn revealed
9 June 2025, 12:01 | Updated: 9 June 2025, 16:20
- All pensioners with income of £35,000 or less will have winter fuel payment restored in full.
- The payment, worth up to £300, will still be given to pensioners with income above the £35,000 threshold, but will then be reclaimed from them in tax
Eight million pensioners who lost the winter fuel allowance last year will get it back this winter, the government has announced.
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Those with an income of below £35,000 a year will benefit from the £200 lump sum in a major U-turn by the Labour government.
But around two million pensioners who are earning over the threshold will not get the payment.
This threshold is above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer, the government has said.
Sir Keir Starmer announced at Prime Ministers' questions that he wanted to review the threshold at which it's given after a huge backlash.
It means that over three quarters of pensioners in England and Wales will now get the benefit from this winter.
It's expected to cost £1.25billion to reinstate the payments - but the Treasury haven't yet said how it'll be paid for.
They said they will set out more details at the budget - but insisted there won't be any more borrowing.
The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter.
Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.
Read more: Rachel Reeves' winter fuel U-turn could be 'disastrous for economy', former Tory minister warns
Chancellor of the Exchequer 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.”
Josh Berlyne from Unite the Union told LBC: "This is a really massive step forward, Unite and the National Pensions Convention have been campaigning for full reinstatement of the winter fuel payment, we think that's the only way to ensure that no one falls through the gaps, it's the simplest way.
"From what we've heard, the Government's proposal goes a long way towards that.
"We want to see detail of how it would work in practice, we want to make sure that there's no application process for pensioners, because we know that pensioners are the least likely to claim what they are entitled to.
"But it's a major step forwards and we're really pleased to see that the Government is listening to the campaign that we've been running and has realised that it was a massive mistake to cut winter fuel payments from some of the poorest pensioners in the country."
What is happening?
Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this year.
How much will it cost?
The Treasury says the measure will cost around £1.25 billion in England and Wales.
How do you get the payment?
No action is needed as those eligible will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC.
The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter.
Who is eligible?
Eligibility is based on a person’s age and place of residence during the qualifying week (the third full week of September).
For winter 2025/26, the qualifying week will be 15 to 21 September 2025. A person needs to have reached State Pension age by the end of the qualifying week to be eligible.
