Government announces revised £35k income threshold for Winter Fuel Payments

Winter Fuel Allowance Image by ri from Pixabay

The government has today (June 9) announced that all pensioners in England and Wales with an income of, or below, £35,000 a year will receive a Winter Fuel Payment.

Last September MPs voted to cut the winter fuel payment for those who are not claiming pension credit or other means-tested benefits.

The controversial policy was supported by 348 MPs with an opposition motion to block the cut receiving 228 votes. Fifty-two MPs did not vote, although reasons why are not given, and one Labour MP- Jon Trickett – voted against the government.

Prior to the vote the payment to help with fuel bills was available to anyone over the age of 66 regardless of income levels, meaning wealthy households were also entitled to the sum.  The payment is £200, rising to £300 for those over 80.

The cut was due to save the government about £1.5bn a year as it attempts to fill a claimed “black hole” in finances of £22bn.

The number of winter payment recipients would have dropped from 10.8 million to 1.5 million.

But last month a partial U-turn on eligibility was announced by Prime Minister Keir Starmer.

At that time the PM said: “We want to ensure that as we go forward more pensioners are eligible for winter fuel payments.

“We will only make decisions we can afford. We will look at that as part of our fiscal event.”

Today the higher threshold has been announced with around 9 million pensioners now eligible for payments.

The government says the threshold is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer

The change will cost around £1.25 billion in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of universal Winter Fuel Payments.

No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC. The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter.

7 Comments

  1. Us pensioners have long memories, you still won’t be getting my vote in the future starmer!
    Let’s hope people won’t be easily fooled by reeves+co backtracking for future votes!
    They left us to freeze and rot.

  2. Will I still get the 25p each year for being over 80? Its very worrying, and I think we should be told!

  3. Amazing how they can suddenly find the money they spent so long saying they couldn’t afford for what they should have been doing as the Labour Party anyway-keeping old people warm, lifting children out of poverty etc-as soon as they get hammered at the ballot box due to their behaviour. Most will not forget your treachery at the ballot box for the next few years though.

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