New Government Maintains Means-Tested Winter Fuel Payments
Pensioners with annual incomes exceeding £35,000 will be deemed too wealthy to receive Winter Fuel Payments under the new Labour government led by Prime Minister Andy Burnham. The rules, originally introduced by former Chancellor Rachel Reeves, remain in place under Burnham and his Chancellor John Healey.
The payments, previously universal for all over-65s, are now linked to income. Around three million pensioners no longer qualify for the annual support, which is worth either £200 or £300 depending on age.
How the Means-Testing Works
Pensioners are judged to be financially comfortable enough to manage without the extra support if their annual income exceeds £35,000. Better-off retirees will also see some money deducted from payments by HMRC as part of the scheme.
The winter allowance is handed to older people to help keep their homes warm during the colder months and usually enters bank accounts during November. However, households that initially receive the cash may have it taken back in instalments from pension payments over the following year.
Payment Amounts by Age
Pensioners aged under 80 receive £200, while those over 80 get the higher amount of £300. The eligibility criteria apply to all pensioners regardless of age.
Impact on Pensioners
The change affects a significant portion of the older population. According to the government, around three million over-65s no longer get to keep the money. The means-testing policy has sparked debate about the adequacy of support for pensioners facing rising energy costs.
