DWP Winter fuel payments to return for more pensioners 2025

The Herald Scotland

2 days ago

She said: 'People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.'
The means-testing of pensioners' winter fuel payments is an issue which has been blamed for contributing to Labour's poor performance in last month's local elections and the Runcorn and Helsby by-election.
When will the details be announced?
Ms Reeves said that she would set out how to pay for any increase in the threshold for the winter fuel allowance at the next budget.
Asked whether she would tell the public if she planned to fund her commitments by raising taxes or cutting spending on other departments, the Chancellor said: 'As we have been clear, on winter fuel we will set out how we will fund that at the next fiscal event.
'We will set out how everything will be paid for at the budget in the autumn but it's important that everything that we do is funded, because that's how people know that we can afford it.'
Will all pensioners receive winter fuel payments?
(Image: House of Commons/UK Parliament/PA Wire) In short, no. 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, Mr 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.'
Very pleased to just hear the Prime Minister has just said he wants more state pensioners to get Winter Fuel Payments (WFP) and they will work out what they're doing in time for the budget.
As I've said since day one, there are two main problems with the way the means testing… — Martin Lewis (@MartinSLewis) May 21, 2025
Mr Bell said he did not have 'lots to add' to what Prime Minister Sir Keir Starmer had said recently about the allowance.
He told the MPs: 'Of course the announcement, as and when it's made, will be made to the House.'
Sir Keir recently signalled a partial U-turn over the Government's decision to strip winter fuel payments from millions of pensioners.
The Prime Minister said 'as the economy improves', he wanted to look at widening eligibility for the payments, which are worth up to £300.
The pensions minister has ruled out returning winter fuel allowance to all pensioners - our recent poll found 33% wanted to do so, but more (44%) thought they should continue to be means tested, but given to more pensioners than under current rules
Results link in following… pic.twitter.com/QiyE2YetgR — YouGov (@YouGov) June 4, 2025
How many more pensioners will receive the winter fuel payments?
Officials have been unable to say how many more pensioners would be eligible.
The decision to means-test the previously universal payment was one of the first announcements by Chancellor Rachel Reeves after Labour's landslide election victory last year, and it has been widely blamed for the party's collapse in support.
The Government has insisted the policy was necessary to help stabilise the public finances, allowing the improvements in the economic picture which Sir Keir said could result in the partial reversal of the measure.
What were the cuts to winter fuel payments, and who currently receives them?
On July 29 2024, the Government announced that from winter 2024, winter fuel payments would be dependent on receiving another means-tested benefit, as part of measures to fill a 'black hole' in the public finances.
This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million.
Pension credit is the primary benefit by which pensioners can receive the winter fuel payment.
The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.
Asked what groups who are currently missing out on winter fuel payments he would like to include again, if possible, Mr Bell told the committee: 'We are committed to the principle that there should be some means-testing and that those on the highest incomes shouldn't be receiving winter fuel payments in the context of wider decisions we have to make – and fairness is an important part of that.
'You can then take from that that my priority is those who are on lower incomes but have missed out.'
He told the MPs: 'I'm not getting into anything about the operation of that but just, you know, I think all of us will have heard from people on lower incomes who didn't receive winter fuel payment this year and I understand the points they've raised. And so we'd like to see wider eligibility.'
Put to him that a universal winter fuel payment would be '100% guaranteed' to reach those who needed it, Mr Bell told the committee: 'You have to wait for us to set out the policy and we will engage directly with the point you are raising.'
Asked what work had been done with HM Revenue and Customs (HMRC) to assess the practicality of recouping payments from higher rate taxpayers, Mr Bell said: 'We're looking at all of the policy options for how this eligibility can be extended, and when I've got more to tell you about that, I absolutely will.'
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Commenting on the hearing, Tom Selby, director of public policy at AJ Bell, said the Government 'now faces a dilemma in determining exactly who should be eligible'.
He suggested that one option could be to award the payment to everyone receiving a state pension, clawing the money back from higher income households, potentially through their tax returns.
Mr Selby said: 'This might look something like the process for clawing back child benefit for working households, although that has caused mass confusion among taxpayers bamboozled by the complexity of the rules.'