DWP confirms group that aren't eligible for Winter Fuel Payment under new rules

The government announced a u-turn on the eligibility for Winter Fuel Payments yesterday, with over three quarters of pensioners set to receive the payments this winter

The DWP has announced a major change to the eligibility criteria for the Winter Fuel Payment this year.

The government has confirmed it will not be reinstating the payments for everyone over State Pension age, however the changes will mean millions more people will be eligible for a payment than last year.

Under the new system, more than three quarters of pensioners are set to receive the payments in England and Wales.

It was announced yesterday, June 10, that around nine million pensioners in England and Wales will receive the Winter Fuel Payment from the Department of Work and Pensions (DWP) this winter.

Only pensioners whose income falls below a certain threshold will get the full payment worth either £200 or £300 later this year.

It comes after the government slashed Winter Fuel Payments for pensioners last year so that only people who were claiming certain benefits - such as Pension Credit - got the financial support. The move reduced the number of people eligible for the payments by around 10 million.

The vast majority of pensioners will now have the payments returned to them, but those who are above the income threshold will not.

Here's what the DWP has said about who is and is not eligible for a payment.

What are the new rules on eligibility for the Winter Fuel Payment?

Previously, Winter Fuel Payments were universal and paid out to everyone over the State Pension age. However, after its election victory last year the new Labour-led UK government announced it would start means-testing the payments to restrict them to only those on certain benefits in an effort to save money.

In recent weeks the government confirmed a partial U-turn on its policy with Chancellor Rachel Reeves confirming that more pensioners will receive the Winter Fuel Payment this year, but payments would not be made universal again.

This year, all pensioners in England and Wales with an income of or below £35,000 will be eligible for the Winter Fuel Payment.

Pensioners won't need to take any action to get the payment as they will be automatically sent out.

For people who are above the £35,000 income threshold, and therefore not eligible for the Winter Fuel Payment, the payment will still be sent to them, but it will then be recovered by HMRC.

Payments sent to those above the threshold will be automatically collected via PAYE or via their self-assessment return, the government said.

Approximately 2 million individuals in England and Wales are over State Pension age and have taxable income of above £35,000, the government said.

No one will need to register with HMRC for this or take any further action and anyone who wishes to opt out and not receive the payment at all will be able to do so, with details to be confirmed.

Winter Fuel Payments are worth £200 for people over state pension age but under 80 years old, and £300 for people who are over 80 years old.

What counts as taxable income?

The £35,000 limit is on taxable income, the government has confirmed.

The list of what qualifies as taxable gross income includes:

• Earnings
• Retirement pension
• Jobseeker’s Allowance
• Widow’s benefit
• Occupational pension
• Personal and annuity pension
• Taxable interest
• Rental property income
• Carers Allowance
• Statutory sick
• Paternity, maternity and adoption pay
• Employment and Support Allowance
• Incapacity Benefit

The government confirmed that eligibility will be based on an individual's taxable income, rather than household income.