State pensioners are being told they are not eligible for Winter Fuel Payments this year as the allowance is now means-tested. The annual income threshold is £35,000, and anyone earning above this amount will not get to keep the money, which is worth either £200 or £300.
The rules were changed by Labour after coming to power. Winter Fuel Payments are now linked to income, meaning not all pensioners qualify. Those with incomes over the threshold will initially be paid the money, but it will then be clawed back by HMRC in instalments from pension payments.
Who is affected by the new threshold
The £35,000 threshold aims to ensure lower-income and vulnerable pensioners are covered while stopping money from being handed to those who don't require it. The Government explained: "If you were born on or before June 27, 1960 you could get between £100 and £300 to help you pay your heating bills for winter 2026 to 2027. This is known as a 'Winter Fuel Payment'."
Most people get the Winter Fuel Payment automatically if they're eligible. "If you're eligible, you'll receive a letter in October or November saying how much you'll get," the Government added. "Most eligible people will be paid in November or December 2026."
How the clawback works
"If your total income is over £35,000, HMRC will take your Winter Fuel Payment back," the Government stated. "Your partner's income does not count towards your total."
This means that pensioners who receive the payment but are over the threshold will see the money deducted in instalments from their pension payments. The change affects state pensioners across the UK, including those in Birmingham and the West Midlands.
In years gone by, the winter allowance was handed to all pensioners. The recent change means that only those with income at or below £35,000 will retain the full payment. Pensioners are advised to check their eligibility and be aware that the payment may arrive early due to an upcoming bank holiday.
