Winter fuel payments to be means tested this winter

Rachel Reeves today announced that winter fuel payments to all pensions will be scrapped. Find out if you’ll be affected.

Labour’s new chancellor, Rachel Reeves has announced that winter fuel payments will be scrapped to all pensioners. Only those receiving pension credit will get the payment this year.

Withdrawing winter fuel payments to all pensions is designed to help plug the £22 billion gap in public spending.

She said it was a ‘difficult’ decision to make and one she didn’t want to make. She added: “Those not in receipt of pension credit or certain other means tested benefits will no longer receive the winter fuel payment from this year onward.”

The government has pledged to continue providing winter fuel payments worth £200 to households receiving pension credit or £300 to those receiving them if they’re over the age of 80.

What is pension credit?

Pension credit is a payment made to those over pension age who are on a low income to help with living costs. You will be entitled to pension credit if your weekly income is £218.15 if you’re single and £332.95 if you have a partner. If your income is higher, you might still be eligible if you have a disability, you care for someone, you have savings or you have housing costs.

Up to £1.1 billion worth of available pension credit went unclaimed last year. Check our benefit checker to see if you could be entitled to claim pension credit support.

If you are awarded pension credit – however small the award – you could also be entitled to other financial support as well, such as:

• Housing benefit
• Support for mortgage interest
• Council tax discount
• A free TV licence if you’re over 75
• Help with NHS dental treatment, glasses and transport costs for hospital appointments
• Warm home discount scheme

Check whether you’re getting all the help you’re entitled to with our free benefits calculator.

What is the winter fuel payment?

Winter fuel payments help pensioners pay for higher heating bills during the winter months. Around 11.5 million pensioners received the payment last year of between £250 and £600 depending on their circumstances.

To qualify for a winter fuel payment, you need to be born before 25 September 1957. This winter, you will now also need to receive either pension credit or another means tested benefit.

It is yet to be confirmed if the government will change how winter fuel payments will be calculated this year.