UK Government Expands Winter Fuel Payments to All Pensioners

In a significant policy shift, the UK Government has announced that starting from the winter of 2025/26, all pensioner households in England and Wales will receive a Winter Fuel Payment. This change is part of the new Social Fund Winter Fuel Payment Regulations 2025, which aim to support pensioners with their heating costs during the colder months.

Key Changes:

• Universal Payments: Previously, Winter Fuel Payments were available only to pensioners receiving certain benefits or tax credits. Now, all pensioners who are ordinarily resident in England and Wales will receive these payments, regardless of their income, as long as they meet certain criteria.

• Payment Amounts: Households with someone of State Pension age will receive £200, while those with someone aged 80 or over will receive £300. If there are multiple eligible people in a household who are not receiving means-tested benefits, the payment is shared among them.

• Tax Recovery: While 10.9 million pensioners will receive payments, about 2 million of these payments will be recovered through the tax system. This recovery applies to those who are not on means-tested benefits and have a taxable income over £35,000.

• Streamlined Claims: Most pensioners will receive their payments automatically, thanks to the Department for Work and Pensions (DWP) using existing records. Only those without a State Pension or DWP benefit record need to claim, which can be done up to 31 March following the qualifying week.

• Opt-Out Option: Those who do not wish to receive the Winter Fuel Payment can opt out through an online form or by contacting the Winter Fuel Payment Centre.

Exceptions and Exclusions:

Certain groups will not receive the payment, including those living in residential care and receiving means-tested benefits, those in prison or hospital for extended periods, and those who have not claimed before the deadline.

Reason for Change:

The government aims to simplify the system and ensure broader support for pensioners facing high energy costs. This policy is also designed to be equitable, with the tax system recovering payments from higher-income pensioners.

Impact and Monitoring:

The legislation is not expected to significantly impact businesses, charities, or the voluntary sector. The effectiveness and reach of the payments will be monitored through annual statistics published by the DWP.

Conclusion:

This change marks a significant expansion in support for pensioners, reflecting the government's commitment to addressing fuel poverty. By making payments universal and simplifying the claiming process, the policy seeks to ensure that more pensioners can keep warm during the winter months.