Millions of pensioners will receive automatic Winter Fuel Payments of £200 or £300 later this year, but not all over-65s will qualify under rules set to remain unchanged by incoming Prime Minister Andy Burnham.
Who Qualifies for the Winter Fuel Payment?
The payments, handed out each November, are worth £200 for those born before 1960 and £300 for older pensioners. However, recent rule changes mean the allowance is now linked to income. Pensioners can keep the full amount only if their annual income is below £35,000. Those with higher incomes will have the payment clawed back by HMRC in instalments.
Background and Changes
Previously, the Winter Fuel Payment was universal for all pensioners. The Labour government introduced means-testing to ensure the money supports lower-income households and is not wasted on wealthier pensioners who do not need the help. These eligibility rules are expected to remain in place under Burnham, who will take over as Prime Minister on July 20 following Keir Starmer's resignation.
According to the article, existing rules around Winter Fuel Payments will stay unchanged. Burnham will also appoint a new Chancellor upon taking office.
Impact on Pensioners
The change means many over-65s with incomes above £35,000 will effectively not benefit from the payment, as it will be reclaimed. The policy aims to target support at those most in need, helping them keep their homes warm during winter.
