Winter Fuel Payment changes in full from today's Spending Review
The change to Winter Fuel Payments was finally confirmed this week ahead of the Spending Review, which is being delivered by Chancellor Rachel Reeves in the House of Commons
Nine million pensioners will receive Winter Fuel Payments in England and Wales this year following a major U-turn - but who exactly will be eligible, and when will the payments be made?
The change to Winter Fuel Payments was finally confirmed this week ahead of the Spending Review, which is being delivered by Chancellor Rachel Reeves in the House of Commons this afternoon.
More than ten million pensioners lost out on Winter Fuel Payments last year after Labour announced they would be limited to state pensioners who are in receipt of means-tested benefits - however, the changes confirmed this week still mean not everyone will get the payment.
We explain everything you need to know about Winter Fuel Payments.
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What are Winter Fuel Payments?
Winter Fuel Payments are designed to help state pensioners pay for their energy bills during the winter months. They are worth £200, or £300 for households with someone aged over 80.
It used to be that they were available to everyone over state pension age, but new rules introduced last year limited them to state pensioners who are claiming means-tested benefits.
The qualifying benefits for last year include Pension Credit, Universal Credit and Housing Benefit. In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment.
How is the Winter Fuel Payment changing from this year?
Winter Fuel Payments in England and Wales will be automatically awarded to all households where someone is over state pension age.
However, if you earn over £35,000 a year, then you will have to pay back your Winter Fuel Payment. The payment will be automatically recovered by HMRC through PAYE, or through self-assessment return.
You can opt out of receiving the payment if your income is over £35,000, with details to be confirmed. Winter Fuel Payments will still be issued per household, but the income eligibility is based per person.
For example, if you have two people living together and one earns £30,000 a year and the other earns £40,000, one person would keep their share of the Winter Fuel Payment but the other would pay it back.
Do I need to apply for a Winter Fuel Payment?
No - these payments will be made automatically, so you don't need to apply for a Winter Fuel Payment. We've already seen reports of scammers contacting people, asking for their details. You don't need to send any information to receive a Winter Fuel Payment.
Most people normally get their Winter Fuel Payment from November every year. Your eligibility based on your age by the end of the qualifying week.
The qualifying week changes every year, but for winter 2025/26, it has been confirmed that the qualifying week will be September 15 to September 21, 2025.
Who isn't eligible for Winter Fuel Payments?
For the last round of Winter Fuel Payments, you weren't eligible if you:
Were in hospital getting free treatment for more than a year
Were in prison during the qualifying week
Were living in a care home during the qualifying week
You also weren't eligible if you lived in a care home for more than 13 weeks, including the qualifying week. Labour has not released any further details on whether this eligibility will still apply for this year.
What has Rachel Reeves said?
This change will cost around £1.25billion in England and Wales and will save around £450million, subject to certification by the Office for Budget Responsibility, compared to the system of universal Winter Fuel Payments.
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.'
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