The Department for Work and Pensions (DWP) has issued a direct call to state pensioners across England and Wales, advising them to carefully check their bank statements this December for a specific six-letter code. This code identifies the crucial Winter Fuel Payment, which is being automatically distributed to around nine million eligible pensioners.
Eligibility and Payment Details
This winter, the eligibility for the Winter Fuel Payment has been expanded. All pensioners in England and Wales with an annual income of £35,000 or less will now receive the support. This threshold is set significantly above the income level of pensioners living in poverty and aligns broadly with average earnings, aiming to balance support for those on lower incomes with fairness to taxpayers.
The DWP has clarified how recipients can safely identify the payment. The payment reference on bank statements will start with the individual's National Insurance number, followed by the code 'DWP WFP'. Payments are being issued automatically throughout November and December, so pensioners are advised not to worry if theirs has not arrived immediately.
Means-Testing and Repayment Warning
In a significant policy shift, the payment is now means-tested. Chancellor of the Exchequer Rachel Reeves described the decision to target the payments as "tough but right" due to the fiscal inheritance from the previous government. She emphasised the importance of the payment being "targeted and fair" rather than universal.
This change means that pensioners with an income exceeding £35,000 who receive the payment may have to repay it. Repayment will be handled automatically by HMRC, either through an adjusted tax code from April 2026 or via the 2025/26 tax return. Affected individuals do not need to take action proactively, as HMRC will contact them.
Official Guidance and Scam Alerts
Labour's Minister for Pensions, Torsten Bell, confirmed that the expanded eligibility means "nine million pensioners across England and Wales will benefit." He also issued a critical warning about financial scams, stating: "Stay alert to scam texts. The government will never ask you to share personal information or click on links to claim your payment."
The expansion ensures that over three-quarters of pensioners in England and Wales will receive the vital financial aid to help with heating costs during the colder months, providing targeted relief to those who need it most.
