BBC expert says two groups will need to apply for winter fuel payment | Personal Finance | Finance
BBC expert Colletta Smith has explained that certain groups of people may be required to apply for the reinstated £300 winter fuel payment.
Speaking on BBC Morning Live, Colletta Smith emphasized that eligibility for this payment has been extended to an additional 9 million state pensioners who missed out last year, as announced by Chancellor Rachel Reeves.
The payments, set at £200 or £300, are due to be disbursed in November and December of this year.
Most pensioners should automatically receive the payment. However, Smith highlighted that some may need to verify their eligibility with the Department for Work and Pensions.
The threshold for eligible pensioners is those with an income of £35,000 or less, including those with some private and workplace pensions, providing they stay below the threshold.
Those eligible will receive the payment automatically without needing to fill out forms. The BBC‘s Cost of Living correspondent, Colletta Smith, stressed: “Those eligible are people who earn now £35,000 or less, so it’s a much higher threshold as a pensioner. So if you are getting some form of private pension, workplace pension, as long as you’re below that threshold of £35,000, you’ll still get the winter fuel payments. And crucially, it will come automatically. So like it used to. Previously you don’t have to apply for it.
“It just pops into your bank accounts come the beginning of November onwards, so you don’t have to worry about any complicated forms to fill in.”
She emphasised that some individuals will have to ensure their details are current to receive the funds, stating: “There will be a small number of people who might need to update their details. So if you have deferred your state pension, if you’ve lived abroad recently and have moved back, it’s probably worth contacting the government to make sure that you do get that payment. For everybody else, you won’t have to apply for it.”
Following the announcement, the DWP has revised its guidance, specifying for the first time those eligible for the cash boost. The department clarified: “The Winter Fuel Payment for 2025 to 2026 will be made to everyone in England and Wales born before 22 September 1959, unless you choose not to get it. You could get either £200 or £300 to help you pay your heating bills for winter.”
Officials reassured beneficiaries: “You do not need to do anything – payments will be made automatically.”
They also cautioned high-income recipients about a potential tax recovery via HMRC, though specifics on this process were not provided.
It stated: “If your income is over £35,000, your Winter Fuel Payment will be recovered later through HMRC. Details of the 2025 to 2026 payment will be available by the end of June 2025.”
Ms Smith noted that individuals earning above a certain threshold may opt out of receiving the money as it would eventually be reclaimed.
She explained: “If you earn £35,000 or above, there is a way of ticking a box to say that you don’t want to receive the payment in the first place, but otherwise, the payment will come through automatically, and then it will be clawed back through the tax system. So you will be taxed a bit more on your pensions to get that £200 taken back off you effectively.
“The crucial week we all need to remember is between the 15th and the 25th of September. So if you have had your birthday by the 21st of September and you’ve become a state pensioner, then at that point you qualify for the winter fuel payment this coming winter. So it’s that week that’s the what they call the qualifying week. 15th to 21st, September.”
