Who will be eligible for winter fuel payments after Rachel Reeves announcement?
The government has begun to set out plans to reverse the winter fuel payment cut for pensioners that has been a thorn in its side since it was introduced.
Last month, prime minister Keir Starmer signalled a partial U-turn over the government's decision to strip winter fuel payments from millions of pensioners. He said that 'as the economy improves' he wanted to look at widening eligibility for the payments, worth up to £300.
However, officials have been unable to say how many more pensioners would be eligible, with both Starmer and chancellor Rachel Reeves refusing to put a figure on it yet.
Here, Yahoo News UK sets out what we know on who might be eligible for the winter fuel payments.
The winter fuel payment is a tax-free annual payment designed to help pensioners cover heating costs during colder months, traditionally ranging from £200 for households with someone aged 66-79 to £300 for those with someone over 80.
Before 2024, it was automatically paid to all pensioners, benefiting around 11 million people.
However, after Labour won the general election in July last year, it introduced means-testing, limiting eligibility to those on pension credit or other means-tested benefits, reducing recipients to about 1.5 million to save an estimated £1.4-1.5 billion annually, amid a what the government claims is a £22 billion deficit.
The chancellor initially defended the means-testing of winter fuel payments as a necessary measure to address the fiscal shortfall Labour said it inherited from the previous government.
However, following a significant backlash, including concerns about pensioner hardship and a drop in Labour's poll numbers, Reeves and Starmer signalled a policy shift last month.
On Wednesday, Reeves only told reporters that 'more people' will get winter fuel payment this winter adding that further details will be announced 'as soon as we possibly can'.
At a speech in Rochdale, Reeves told reporters: 'We have listened to the concerns that people had about the level of the means test, and so we will be making changes to that; they will be in place so that pensioners are paid this coming winter.
'We'll announce the detail of that and the level of that as soon as we possibly can. But people should be in no doubt that the means test will increase and more people will get a winter fuel payment this winter.'
Under the current rules, only pensioners born on or before 23 September 1958 receiving pension credit or other means-tested benefits, such as Universal Credit or Income Support, qualify for the winter fuel payment, targeting those with incomes below £11,800. For pensioner couples, this figures stands at £18,023.
Pensioners must also live in England, Wales or Northern Ireland.
The government plans to widen eligibility by adjusting the income threshold, although specific details are yet to be confirmed and will likely be clarified in the autumn budget, expected in October.
The exact criteria is still under review, with speculation that up to three million more pensioners could benefit, depending on the final policy outlined in the budget.
Financial expert Martin Lewis said he hopes the income threshold rises to £20,000 and urged the chancellor to ensure that pensioners who are entitled to the payment but aren't aware – which he estimates to be around 700,000 people – are also made aware and given the money.
My instant response to Winter Fuel Payment news & key message to the Chancellor (I heard while walking to the office, so pls forgive the fact it was done there and then for speed) pic.twitter.com/5t2kxwAkPj
— Martin Lewis (@MartinSLewis) June 4, 2025
Pensions minister Torsten Bell told MPs that, while more pensioners will be eligible, there is no prospect of returning to universal winter fuel payments.
Speaking to the Work and Pensions Committee, Bell said: 'Directly on your question of is there any prospect of a universal winter fuel payment, the answer is no, the principle I think most people, 95% of people, agree, that it's not a good idea that we have a system paying a few hundreds of pounds to millionaires, and so we're not going to be continuing with that.
'But we will be looking at making more pensioners eligible.'
Winter fuel payments are typically distributed between November and December each year to help pensioners manage heating costs during peak winter months.
It remains uncertain whether changes will apply for the 2025-26 winter season, raising concerns about the lack of support in the coldest months.
Critics, including Conservative leader Kemi Badenoch, have warned that delays could worsen the financial strain for vulnerable households.
Pensioners already eligible under current rules should receive payments at the current times.
Pensioners ineligible for winter fuel payments can access other support to ease energy costs.
Pension credit, providing up to an average of £3,900 a year for low-income pensioners, also guarantees winter fuel payment eligibility and has seen a 64% surge in applications being awarded, with 117,800 approved by February.
The warm home discount offers a £150 reduction on energy bills for qualifying low-income households, including those on pension credit.
In Northern Ireland, a £100 fuel support payment helps offset the impact of means-testing.
Additionally, local councils and charities may offer discretionary grants or energy-saving advice to support pensioners this winter.
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