What is the winter fuel payment, how much is it and who gets it?

Chancellor Rachel Reeves has confirmed that more people will get the next winter fuel payment after a widely-expected u-turn over eligibility.

The government was criticised for its 2024 decision to limit the payment to those receiving pension credit or another means-tested benefit, which meant millions of older people missed out.

Reeves is expected to set out some details about who will qualify in winter 2025 as part of the Spending Review on 11 June, but full details are not expected until the Budget later in the year.

The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year.

But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit.

The changes meant that more than 10 million pensioners did not receive a winter fuel payment in 2024.

Several charities, unions, and MPs criticised the decision.

They expressed concern about the number of older people living on a relatively small income who would miss out, as well as those who do not claim pension credit despite qualifying for it.

Some Labour MPs blamed the policy for the party’s losses in the May local elections and the Runcorn and Helsby by-election.

After much speculation, at the start of June Reeves said: “People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.”

But it is not clear exactly who will qualify under the revised rules or how much it will cost.

The winter fuel payment is currently worth £200 for those on certain benefits and born between 23 September 1944 and 22 September 1958.

For those born before 23 September 1944, and on certain benefits, it is worth £300.

If a couple live together and jointly claim benefits, only one of them gets the payment.

Although the winter fuel payment is paid automatically, without a direct claim, the vast majority of those eligible in winter 2024 only received the money if they had already registered to receive pension credit.

This is a state pension top-up, which itself is worth thousands of pounds a year, and can be a gateway to other financial support, including a reduction in council tax, a free TV licence for those aged over 75, or help with NHS costs.

However, despite regular campaigns from the government encouraging take-up – and an increase in claims after the July 2024 announcement – more than half a million eligible pensioners still fail to claim it.

You could be eligible for pension credit if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account.

Anyone entitled to pension credit for at least one day between 16 and 22 September 2024 received the winter fuel payment last winter.

Disabled people, those caring for someone, or those with housing costs could still be eligible even if they had additional income or savings.

You can check your eligibility via the government’s online calculator.

Information is also available about how to make a claim.

The winter fuel payment is usually paid automatically in November or December. Those eligible receive a letter confirming their entitlement.

The volume of extra pension credit applications after the 2024 rule change meant some people had to wait for their payment.

The Department for Work and Pensions (DWP) said it deployed 500 additional staff to speed up processing.

The government estimates 1.9 million pensioners – about 15% – live in relative poverty.

This means their income is less than 60% of the median, which is the amount of money that divides a population into two – with half earning more, and half less.

In November, Work and Pensions Secretary Liz Kendall confirmed the government expected significantly more pensioners to be in relative poverty due to the 2024 changes:

• an extra 50,000 in the years ending March 2025, March 2026 and March 2028
• an extra 100,000 in the years ending March 2027, March 2029 and March 2030

The figures were rounded to the nearest 50,000 and did not take into account any increase in the take-up of pension credit.

Writing to MPs on the Work and Pensions Select Committee, Kendall said means-testing winter fuel payments “was not a decision this government wanted or expected to take” but it was “right that we target support to those who need it most”.

Asked about the figures, Starmer said many pensioners would be better off from April 2025, when both the state pension and pension credit increased by 4.1%, under “the triple lock” arrangement.

The Committee has since taken evidence as part of its own inquiry into pensioner poverty.