
DWP Winter Fuel Payment rules confirmed for couples including who gets what
DWP Winter Fuel Payment rules confirmed for couples including who gets what
Nine million pensioners in England and Wales will receive the Winter Fuel Payment from the DWP this winter after a government u-turn - here are the rules
The announcement follows last year's reduction in payments
(Image: Richard Youle )
The Department for Work and Pensions (DWP) has clarified the regulations surrounding the Winter Fuel Payment for pensioners who are cohabiting.
Yesterday, June 11, it was announced that nine million pensioners in England and Wales would receive the Winter Fuel Payment from the DWP this winter following a government reversal of policy.
This adjustment means eligible pensioners - those earning £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 MoneySavingExpert.
Under the new amendments, all pensioners earning under £35,000 a year will automatically receive the payment this year, reports the Manchester Evening News.
Pensioners earning above this threshold will also receive the payment, but it will subsequently be reclaimed through tax. For money-saving tips, sign up to our Money newsletter here
This implies that if someone earns over £35,000, their portion of the household payment will be recouped either through the PAYE or the self-assessment tax system.
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Payments will be made per household, meaning a household with more than one pensioner will only receive one payment of up to £300.
So, 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, meaning if one pensioner's earnings exceed the threshold, their portion of the payment will be reclaimed via the tax system, while their partner will still receive theirs if their own income is below the limit.
Martin Lewis described this as a "good system compared to what we thought was going to happen", having initially feared the threshold would hinge on the higher earner's income.
MoneySavingExpert highlights an exception for couples claiming Pension Credit, noting: "If you're a couple claiming Pension Credit, there's no split.
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You'll get £200 or £300 (if one of you is 80+) in one lump sum. And the clawback will not affect you, as if you earned enough for the clawback to apply, you wouldn't be eligible for Pension Credit in the first place."
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