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What does the change to the winter fuel payment mean?

What does the change to the winter fuel payment mean?

The Guardian2 days ago

After months of speculation the government has announced that it will reinstate the winter fuel payment to most pensioners in England and Wales.
Under the new rules, any pensioner with an income of up to £35,000 a year will be eligible for the full allowance, while anyone on more will have to pay back their share.
The payment is worth £200 a year to households where both pensioners are aged under 80 years old, and £300 if there is a person aged 80 or over.
A pensioner aged 85 who lives alone will get £300, as will a couple of the same age.
The new system will mean these payments are made automatically to those receiving a state pension. There will be no need to claim the money.
No. The threshold applies to individuals, not households. A couple who qualify for a £200-a-year payment will get £100 each. If one has an income of more than £35,000 a year and the other does not, the higher earner will have £100 clawed back while the other one is allowed to keep the money.
In a couple where one person is aged 80, they will receive £200 and the other will receive £100. The person over 80 will repay £200 if their income is more than £35,000.
This will create some quirks. A single pensioner, living alone, will repay the full £200 or £300 if their income is more than £35,000, while a couple with an income of £69,000 would keep all the money.
Two households with the same incomes and one person aged over 80 could have to repay different sums depending on whether it is the older or younger person who receives more than £35,000.
For most pensioners, money will be taken through the pensioner's tax code and applied to their income the next year. Those who already file a tax return for other reasons may find it is added to it, but it is not yet clear if that will be the case.
The same is true when someone dies. The government says it will not make families do a return or pursue them for the winter fuel payment. However, if they have to do a return for someone who has died for other reasons, it is not clear if they will have to declare the payment.
There is a potential for problems if someone retires part-way through a tax year and earns more than £35,000 because they are still getting their salary, then drops well below that the next year – they will be faced with repaying the payment when they are on a lower income.
No. The new means-testing will take into account income only, not savings or the value of any property. A person with £1m in the bank would still qualify for the payment with an income less than £35,000.
The Scottish government gives out a pension-age winter heating payment. Last winter this was restricted to only those people who qualified for one of a handful of benefits including pension credit. This will change next winter, and the payment will be given more widely.
Northern Ireland has a winter fuel payment and seems likely to move in line with England and Wales.

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