The Department for Work and Pensions (DWP) has confirmed that Winter Fuel Payments will be reinstated this year, following a policy U-turn that could affect nearly nine million people. The payments, worth either £200 or £300, will be made to eligible pensioners from November, after many were excluded from support during the 2024 winter period.
The return of these payments marks a reversal of last year’s heavily criticised decision, which left millions of older people without the usual winter assistance. This time, the scheme comes with new income-based rules, introducing a £35,000 annual threshold, above which pensioners will have their payments reclaimed through the tax system.
New Income Threshold Changes Who Qualifies
The 2025 Winter Fuel Payment scheme differs significantly from previous years due to the introduction of an income cap. According to DWP guidance, only those with a total annual income of £35,000 or less will be eligible to retain the payment. While payments will still be issued to most pensioners automatically, HMRC will recover the funds from those above the income limit through changes in tax codes or adjustments in Self Assessment filings for the 2025–2026 and 2026–2027 tax years.
Most recipients will receive either £200 (under 80 years of age) or £300 (over 80), depending on age and circumstances during the qualifying week between 15 and 21 September 2025. To qualify, individuals must be born on or before 21 September 1959. The majority will not need to apply, provided they already receive state support such as State Pension, Pension Credit, or Attendance Allowance.
Those not receiving any DWP benefits, or asked specifically to apply, must submit a form or phone the dedicated line starting 13 October. The claim form is available through the official government website.
Reinstatement Follows Widespread Backlash
The move follows sustained criticism after the 2024 decision to reduce or withdraw winter support, which reportedly left households hundreds of pounds worse off during a period of high energy costs.
The DWP confirmed the policy shift in June, stating that up to nine million people across England and Wales would receive support under the revised plan. The change, while welcomed, has raised questions about the use of income thresholds in benefit eligibility and how such decisions are communicated.
While many pensioners will be relieved by the payments’ return, the introduction of income-linked clawbacks adds complexity. Those unsure about their eligibility or potential repayments are advised to consult HMRC or the gov.uk website directly for personalised guidance.
