Winter Fuel Payment: In a major policy reversal, Chancellor Rachel Reeves confirmed that more pensioners in the UK will qualify for the Winter Fuel Payment starting this winter, following growing criticism over last year’s cuts. The move comes as part of Labour’s efforts to soften the blow of the ongoing cost-of-living crisis for older citizens.
Last winter, the payment — worth up to £300 per household — was restricted only to pensioners on Pension Credit, slashing eligibility by nearly 10 million people. The backlash was swift, with charities, MPs, and campaigners warning that many older adults just above the income threshold were left to face soaring energy costs without support.
Now, the government has committed to raising the means-testing threshold, though full eligibility details are still to be confirmed. Reeves assured that the updated criteria will be in place before the payment is distributed, typically between November and December 2025. “More people will get Winter Fuel Payment this winter,” she told reporters, adding that the economic turnaround allows the government to “listen and act.”
The Department for Work and Pensions (DWP) is said to be exploring several options, including allowing households not on Pension Credit to apply directly or even replicating the child benefit model, where higher-income pensioners would repay part or all of the benefit through the tax system.
The Institute for Fiscal Studies (IFS) has also weighed in, suggesting a universal payment model with a tax-based clawback for wealthier recipients could be the most administratively efficient route. However, experts warn of possible delays and confusion unless full clarity is provided soon.
Prime Minister Sir Keir Starmer faced mounting pressure during Prime Minister’s Questions this week but promised action, stating, “We want to ensure more pensioners are eligible for Winter Fuel Payments. That’s our commitment as we move forward.”
Meanwhile, charities like Age UK are cautiously optimistic but urge the government to publish detailed eligibility criteria quickly. “This is crucial if we’re to protect the pensioners at greatest risk before winter hits,” said Caroline Abrahams, charity director at Age UK.
As energy bills remain high and many retirees continue to feel the squeeze, the revised Winter Fuel Payment scheme is expected to offer critical relief to millions. Final policy details are anticipated ahead of the UK Government’s 11 June spending review.