DWP winter fuel payments to be paid to nine million pensioners this winter after u-turn

The £300 payment has been restored to the vast majority of pensioners who previously received it

Nine million pensioners in England and Wales will receive the winter fuel payment this winter after a government u-turn, it has been announced.

The £300 payment has been restored to the vast majority of pensioners who previously received it, Chancellor Rachel Reeves has said.

Anyone with an income of under £35,000 a year will now get the payment automatically.

Pensioners with an income above this threshold will also receive the payment - but it will then be reclaimed from them in tax.

To be eligible for the winter fuel allowance, a person will need to have reached state pension age by the week starting September 15 this year.

Chancellor Rachel Reeves said: “Targeting winter fuel payments was a tough decision but the right decision because of the inheritance we had been left by the previous government.

“It is also right that we continue to means test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.

“But we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out.

“This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.”

The decision to limit the winter fuel payment to only those who claimed pension credit was one of Labour’s first acts in Government, aimed at balancing what was described as a £22 billion “black hole” in the public finances.

This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million.

Sir Keir Starmer announced there would be a partial U-turn on the policy in May, after it was thought to have contributed to Labour’s drubbing in the local elections.

The Treasury claims the new arrangement will cost £1.25 billion in England and Wales, while means-testing winter fuel will save the taxpayer £450 million.

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