Three-quarters of pensioners to get winter fuel payment this year

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The government announced that nine million pensioners in England and Wales earning £35,000 or less annually will receive the winter fuel payment this year. This marks a significant policy turnaround with Chancellor Rachel Reeves confirming that three-quarters of people of state pension age will now qualify for the allowance. Last year, the payment was only allocated to those on pension credit, causing millions who had previously received it to miss out.

The winter fuel payment, which can be worth up to £300 to assist with energy bills during the colder months, was heavily criticized for its impact on Labour’s local election results. The near complete reversal of the policy comes just before the government’s Spending Review set to take place on Wednesday. With the increased threshold for eligibility, the government assured that no lower or middle-income pensioners will be excluded from receiving the winter fuel payment.

Households with someone under 80 years old will automatically receive £200 per year in November or December, while those with individuals over 80 will receive £300. About two million pensioners with an annual income exceeding £35,000 will either have the payment recovered or be able to opt out. This shift in policy is expected to cost taxpayers around £1.25 billion, a stark contrast to the estimated savings of £1.4 billion from the initial payment cut.

From concerns raised by charities and MPs regarding the previous policy, the government’s new means-testing approach is anticipated to save approximately £450 million. Chancellor Reeves emphasized the importance of targeting and fairness in means-testing for winter fuel payments rather than universal eligibility. The government assures that pensioners will not need to take any additional steps to receive payments, and those wishing to opt out will have a system put in place for their convenience

Read the full article from The BBC here: Read More

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