Winter Fuel Payment decision by DWP on pensioners living as a couple
The Department for Work and Pensions (DWP) has explained the regulations over the Winter Fuel Payment for pensioners who are living together as a couple. Following a government U-turn, it was announced on June 11 that nine million pensioners in England and Wales will receive the benefit from this winter.
This adjustment means that eligible pensioners – those with an income of £35,000 or less – will receive either £200 or £300 this winter. It follows last year's reduction in payments when they were means tested for the first time, with only those on certain benefits receiving the payment.
This effectively lowered the income threshold to just £11,600, according to Money Saving Expert.
Under the new amendments, all pensioners earning less than £35,000 per year will automatically receive the payment this year, reports the Manchester Evening News.
Rules on households
Pensioners earning above this threshold will also receive the payment, but it will subsequently be reclaimed through tax. This implies that if someone earns over £35,000, their portion of the household payment will be recouped either via the PAYE or self-assessment tax system.
Payments will be made per household, meaning a household with more than one pensioner will only receive one payment of up to £300. Therefore, for instance, two pensioners over the age of 80 living in the same house will each receive £150.
Income is assessed individually rather than based on household income when it comes to certain payments for pensioners. This means that if one partner in a pensioner couple earns above the income threshold, they will have their portion of the payment reclaimed via the tax system, while their partner will still receive their share if their own income is below the threshold.
'Good system'
Martin Lewis, the founder of the Money Saving Expert website, praised this approach as a "good system compared to what we thought was going to happen", having initially expected the threshold to be determined by the higher earner's income within a household.
For most pensioner couples, the payment is usually shared, but MoneySavingExpert highlights an important exception. The website clarified: "If you're a couple claiming Pension Credit, there's no split. You'll get £200 or £300 (if one of you is 80+) in one lump sum.
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