What is the winter fuel payment worth and who will get it?

More people will get the next winter fuel payment after a widely-expected U-turn over eligibility.

The government bad been 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.

The reversal means 75% of pensioners in England and Wales will receive the payment in winter 2025, and the rules will also change again in Scotland.

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, Reeves announced a U-turn in June which means winter fuel payments will now go to around nine million pensioners in England and Wales with an annual income of £35,000 or less.

She said the government would “continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest”.

The winter fuel payment is worth £200 for people of state pension age up to 79-years-old. People aged 80 or older receive £300.

In winter 2025, pensioners in England and Wales will get the payment automatically. It is usually paid in November or December.

Households in England and Wales which do not receive an income-related benefit such as Pension Credit will share the payment.

For example, a couple each aged under 80 will be paid £100 per person.

In a household with two eligible residents, if one earns more than £35,000 and the other earns less than that, the higher-income pensioner will not receive anything and the lower-income pensioner will receive half the payment.

In order to work out who you’re in a household with, the Department for Work and Pensions (DWP) will cross-reference all the data held in the benefits system.

This includes the state pension, pension credit and the Attendance Allowance which is then matched with your address.

The roughly two million people above state pension age who have a taxable yearly income of more than £35,000 will receive the winter fuel payment but it will be clawed back through higher tax bills.

It is not yet clear if Northern Ireland will also reverse the move to means-based winter fuel payments.

In 2024 Northern Ireland Communities Minister Gordon Lyons said funding constraints meant the Stormont government had to follow Westminster’s lead.

He later said affected pensioners would receive a one-off payment of £100 to help with heating costs.

In Scotland, the government had already planned to introduced a new winter heating payment “for every single Scottish pensioner” before winter 2025.

However, Holyrood ministers now plan to match the £35,000 income limit being introduced in England and Wales.

The amount paid may be slightly higher – either £203.40 or £305.10 per household – as, unlike in England and Wales, the payment would be increased in line with inflation.

Although the winter fuel payment is typically 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.

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

Information is also available about how to make a claim.

The independent MoneyHelper website – which is backed by government – provides a general guide to benefits including details about who qualifies, and what to do if something goes wrong.

Independent benefits calculators are run by Policy in Practice and charities Entitledto and Turn2us