Two million state pensioners lose Winter Fuel Payments this winter | Personal Finance | Finance
Two million state pensioners will be made to give up their Winter Fuel Payments this winter, the government has confirmed. The system for issuing the £200 to £300 payments has been changed for this coming winter, following the disastrous rollout of means testing in 2024 which had tied the cash to Pension Credit, limiting eligibility to people earning about £11,300.
Instead, this year, new rules stipulate that the money will be paid to all state pensioners, but reclaimed back in tax by HMRC for those earning more than £35,000. It means that this winter, approximately two million state pensioners will be made to hand back their Winter Fuel Payment because they earn too much to be allowed to keep it.
The Treasury released figures in summer in collaboration with Chancellor Rachel Reeves which explains how many pensioners will be able to keep their £200 payment (rising to £300 for over-80s), and how many must give it back.
It said: “Nine million pensioners to receive Winter Fuel Payments this winter as all pensioners in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment.
“This extends eligibility to the vast majority of pensioners, with around 9 million, or over three quarters, benefitting. This threshold is well above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer.”
It went on to add: “Approximately 2 million individuals in England and Wales over State Pension age have taxable incomes above £35,000.”
The Treasury said the change would save £450M for the taxpayer compared to fully universal Winter Fuel Payments.
Those who are affected will not need to take action, as tax office HMRC will automatically take the money back, the Treasury added.
It explained: “No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold, it will be automatically recovered via HMRC.
“The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter. Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.”
