Major Winter fuel payment U-turn as millions to get up to £300
OAPs with an income of £35,000 or below in England and Wales will receive the benefit this winter. It is a major uplift from the current £11,500 cut-off point.
It means nine million pensioners will now be eligible for the winter support. Around two million pensioners whose income is above £35,000 will have the payment automatically recovered or can opt out from receiving it.
Keir Starmer last month announced he wanted more pensioners to be eligible for the help, which is worth up to £300. The PM faced a damaging backlash after last year introducing a means-tested system for the winter fuel allowance, which had previously been a universal benefit. Around 10 million pensioners lost the support last winter.
The changes announced today will cost around £1.25billion. The Treasury said the new means-testing system is expected to save around £450million, compared to the universal system.
No pensioner will need to take any action as they will automatically receive the payment this winter. Payments of £200 per household, or £300 per household where there is someone over 80, will be made.
OAPS with incomes above the £35,000 threshold will have the full amount of the winter fuel payment they received automatically collected via PAYE, or via their Self-Assessment return. Pensioners who want to opt out and not receive the payment at all will be able to do so. DWP is developing a simple system to enable OAPs to opt out if they wish.
Ms Reeves, the Chancellor, 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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At PMQs last month, the PM said with the economy showing signs of improvement he wants to ensure "more pensioners are eligible for winter fuel payments". The surprise announcement came amid mounting pressure to roll-back the decision to strip the payment from all but the very poorest pensioners - those who receive Pension Credit.
Tensions have been rising in Labour ranks after Reform UK made sweeping gains in the English local elections in May and also won a by-election in the Labour stronghold of Runcorn and Helsby by six votes.
At the time, Ros Jones, who held on as Doncaster mayor by a majority of less than 700, said the Government needs to listen to the public as she hit out over winter fuel and benefit cuts. In a furious message after her narrow victory at the mayoral elections, she said the winter fuel cuts were "wrong".
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