DWP Confirms New Rules for Winter Fuel Payments for Pensioners Living in Care Homes

Only certain pensioners in care homes will receive Winter Fuel Payments this year under updated rules confirmed by the Department for Work and Pensions.

Published on
Read : 2 min
Caregiver Talking with Elderly Women in Nursing Home
DWP Confirms New Rules for Winter Fuel Payments for Pensioners Living in Care Homes Credit: Canva | en.Econostrum.info - United Kingdom

The Department for Work and Pensions (DWP) has confirmed that only a specific group of pensioners living in care homes will be eligible to receive Winter Fuel Payments this year. The decision is part of the government’s regular winter support scheme and follows recent clarifications on payment criteria.

According to the Manchester Evening News, the updated guidance outlines who will receive the financial assistance and under what conditions. A Government U-turn announced on June 11 restored the scheme after public and political attention, yet the rules remain strict. Many pensioners may still fall outside the eligibility requirements due to their circumstances.

Over 9 Million Pensioners Will Receive Payments—But Not Everyone Qualifies

The Winter Fuel Payment is a one-off annual sum given to older people in the UK to help with heating costs during winter. In 2025, the scheme will distribute payments of either £200 or up to £300, depending on age and circumstance. According to the government, the maximum amount of £300 will only be paid to those born before September 22, 1959, making date of birth a key factor in eligibility.

This support is expected to benefit nine million pensioners in England and Wales, underscoring its national importance. But eligibility also depends heavily on annual income: pensioners with an income above £35,000 are technically still eligible to receive the payment but will be required to repay it.

As stated on the official government website (gov.uk), HMRC will claw back the payment by either:

  • Adjusting the tax code for the 2026 to 2027 tax year, or
  • Including it in the 2025 to 2026 Self Assessment tax return.

This repayment mechanism is intended to ensure that the Winter Fuel Payment targets those who truly need help heating their homes.

Stringent Criteria for Pensioners in Care Homes

Pensioners who reside in care homes face a more restrictive set of rules. While living in a care home doesn’t automatically disqualify someone from receiving the Winter Fuel Payment, there are two conditions that, when combined, make a resident ineligible:

  1. If they are receiving any of the following means-tested benefits:
    • Universal Credit
    • Pension Credit
    • Income Support
    • Income-based Jobseeker’s Allowance (JSA)
    • Income-related Employment and Support Allowance (ESA)
  2. And if they have lived in a care home for the entire period since June 23, 2025 or earlier.

Only if both conditions apply will the pensioner be excluded from receiving the payment. This nuance is significant, as many long-term care home residents rely on such benefits and could mistakenly believe they qualify.

Automatic Payments for Eligible Recipients on State Benefits

For most eligible pensioners, Winter Fuel Payments are automatically processed without requiring any action, provided they already receive certain types of state support. According to gov.uk, these benefits include:

  • State Pension
  • Pension Credit
  • Universal Credit
  • Attendance Allowance
  • Personal Independence Payment (PIP)
  • Carer’s Allowance
  • Disability Living Allowance (DLA)
  • Income Support
  • Income-based ESA
  • Income-based JSA
  • War Pensions Scheme
  • Industrial Injuries Disablement Benefit
  • Incapacity Benefit
  • Industrial Death Benefit

Still, exceptions apply. If someone’s circumstances have recently changed—such as moving into a care home, starting to receive a new benefit, or surpassing the £35,000 income threshold—they should check their status on the government’s official website to avoid confusion or overpayment.

Leave a comment

Share to...