The Department for Work and Pensions (DWP) has confirmed that state pensioners over the age of 80 will receive a £100 increase in their Winter Fuel Payment this year. The change means that households with someone aged 80 or over will get £300, up from £200 for standard households. Nine million pensioners across England and Wales with an annual income of £35,000 or below will benefit from the payment.
Means-Testing and Cost Savings
The new system, which introduces means-testing for Winter Fuel Payments, is expected to save around £450 million compared to the previous universal payment model. The overall cost of the expanded eligibility is approximately £1.25 billion in England and Wales, subject to certification by the Office for Budget Responsibility (OBR). These costs will be accounted for in the next Budget and incorporated into the OBR's forecast.
No pensioner needs to take action to receive the payment, as it will be made automatically this winter. For those with incomes above the £35,000 threshold, the payment will be automatically recovered via HMRC.
Triple Lock and State Pension Increases
In addition to the Winter Fuel Payment changes, over 12 million pensioners across the United Kingdom will benefit from the Triple Lock, which will increase the State Pension by up to £1,900 over the current parliament.
Government Statement
Chancellor of the Exchequer Rachel Reeves said: "Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest."
She added: "But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter."
