Pensioners born before 1945 are set to receive a £100 increase in their winter fuel payments as part of a new government initiative aimed at supporting elderly households during the colder months. The increased payment is designed to provide much-needed financial relief for pensioners, particularly as energy costs remain a significant concern.
The Winter Fuel Payment is a tax-free grant given to eligible pensioners to assist with heating costs over the winter. Starting in the 2024/25 winter season, eligibility for this payment has been restricted, but the new increase will benefit those born before 1945.
Eligibility and Payment Structure
According to government sources, the new payment scheme will be targeted specifically at pensioners, with those earning over £35,000 losing eligibility for the winter fuel allowance.
This means that if a household’s total income exceeds this threshold, the payment will be recouped through tax adjustments. For individuals within the PAYE system or those using self-assessment, this will be done automatically without causing anyone to pay additional tax.
The Winter Fuel Payment is an essential lifeline for many pensioner households, particularly those with limited incomes. The payment amount depends on the age of the pensioner and the composition of the household.
If a household contains someone aged 80 or over, they will be entitled to the higher £300 payment, with the amount being split if there are two eligible people in the home. If both individuals are aged 80 or over, the £300 total will be evenly divided, with each person receiving £150.
In households where one person is 80 or over and the other is under 80, the older person will receive £200, while the under-80 will get £100, making a total of £300. However, if both individuals are under 80 and eligible, each will receive £100, totalling £200 for the household.
Controversy and Changes to Eligibility
Initially, the Winter Fuel Payment was available to all pensioners, but from 2024, the eligibility criteria have become stricter. The payment will now be limited to those receiving Pension Credit or other qualifying benefits, which has sparked concerns among experts.
Martin Lewis, the founder of MoneySavingExpert, has been vocal about the restrictions, arguing that limiting the payment to those on Pension Credit could leave thousands of eligible pensioners without support.
According to Lewis, approximately 800,000 pensioners who qualify for Pension Credit do not claim it, and restricting access could result in a significant oversight.
In response to these concerns, government officials have stated that the revised policy is intended to better target those most in need, although this continues to be a contentious issue within the political landscape.
