State pensioners receiving the £200 Winter Fuel Allowance from the Labour government and the Department for Work and Pensions (DWP) will have the payment clawed back if their income exceeds £35,000. Martin Lewis, the BBC and ITV consumer finance expert, has described this as a "cliff edge" policy.
How the Clawback Works
Lewis explained: "This is a cliff edge. If you earn £35,000 and 1p, you lose the entire £200. It is not a graduated scheme, it is a cliff edge scheme, it is all or nothing." He added that income subject to Income Tax includes private pensions, state pension income, employment income, and savings interest outside of an ISA.
The Winter Fuel Payment will again be a universal payment in England and Wales for state pensioners this winter, but it will be reclaimed via the tax system for those earning over £35,000. The payment will be made automatically to all pensioners, even those with income above the threshold, and the clawback will occur through HMRC.
Scam Warning
Pensioners are being warned about scammers who are sending fraudulent text messages claiming to be from the DWP. One such text reads: "DWP Service Centre: You have not yet completed your application for an energy subsidy for 2024-2025. The subsidy is £300. It is important that you submit your application by 10 June. Late applications will not be processed. (LINK) (Please reply 'yes' and then exit the text message and re-open to activate the link, or copy the link and open it in your browser). Have a great day, DWP."
Any text claiming to be from the DWP requesting an application for the Winter Fuel Payment is a scam, as the payment is automatic. Pensioners are advised not to open any suspicious links and to delete such messages immediately.
