Winter Fuel Payments will be given to nine million pensioners as Reeves modifies eligibility requirements

After the chancellor controversially means-tested the Winter Fuel Payment program in 2024, Rachel Reeves has announced that the eligibility requirements will be changed this winter

Who is going to be eligible?

Following the announcement of changes to the eligibility requirements today, millions of pensioners will now receive the Winter Fuel Payment this year.

Nine million pensioners in England and Wales are expected to receive the benefit this winter, according to the Treasury, with payments aimed at those with lower and middle incomes.

In 2024, the government controversially means-tested the payment, which significantly decreased the number of recipients.

Each household receives 200 for the Winter Fuel Payment, or 300 if there is an elderly person living there.

Last year, Chancellor Rachel Reeves defended the "tough" decision to target Winter Fuel Payments, saying it was "the right decision because of the inheritance we had been left by the previous government."

In addition, she stated: "Instead of restoring eligibility to everyone, including the wealthiest, it is appropriate that we keep means-testing this payment to ensure that it is targeted and equitable.

"However, we have taken action to increase the Winter Fuel Payment's eligibility so that no pensioner with a lower income will be left behind.

"How politically and practically difficult it is to unpick long-standing universal benefits like the Winter Fuel Payment," said Jon Greer, head of retirement policy at Quilter, in reference to the climbdown.

According to him, the government "underestimated both the administrative burden and the strength of feeling such changes provoke among pensioners," even though limiting payments to those on specific income-related benefits, like Pension Credit, may have seemed "fiscally responsible."

The Winter Fuel Payment for 2025 - 2026 will go to whom?

This winter, the Winter Fuel Payment will be available to those who have reached state pension age in England and Wales and earn 35,000 or less annually.

The qualifying week, which for this winter will be September 1521, 2025, is based on age and place of residence.

Because of today's announcement, pensioners with lower and middle incomes shouldn't be excluded from the assistance.

According to the Treasury, more than three quarters of pensioners in England and Wales will now be eligible.

For those with yearly incomes over 35,000, HMRC will either automatically collect the payment or allow them to opt out.

In England and Wales, approximately two million individuals who are over the state pension age and have taxable incomes exceeding 35,000 are in this category.

How to receive the 2025 - 2026 Winter Fuel Payment.

If eligible, pensioners will automatically receive the Winter Fuel Payment this winter.

Those with incomes over the threshold will automatically have the payment recovered by HMRC.

They will do this through their self-assessment tax return or PAYE.

A system to allow individuals to choose not to receive the Winter Fuel Payment will be developed by the DWP, the government announced today.

Northern Ireland receives the Winter Fuel Payments, and Scotland has devolved the policy area.

Following the change in England and Wales, the Treasury confirmed that the Northern Ireland Executive and the Scottish Government will receive a mechanical increase in funding.