Majority of pensioners to get winter fuel payment: ‘Finally the chancellor has seen sense’

The Labour government has increased the winter fuel payment threshold, meaning that nine million pensioners will be eligible for the financial support this year.

All pensioners in England and Wales with an income of or below £35,000 a year will receive the winter fuel payment, extending the eligibility to the majority of pensioners.

More than three quarters of all pensioners will receive the £200 winter fuel payment – or £300 if they are over the age of 80 – to help them cover the cost of their energy bills.

Read more:

• Labour’s disability benefit cuts will force nearly half a million people to turn to food banks
• Rachel Reeves is about the deliver the spending review. What could be in it – and what should be?
• Nearly half of Brits only £100 away from being overdue on their rent or mortgage: ‘On a knife edge’

Chancellor Rachel Reeves said: “Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest. 

“But we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out. This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.”

The announcement comes ahead of the chancellor’s Comprehensive Spending Review, which is set to be revealed on Wednesday (11 June) and will determine plans for public spending until the end of this parliament.

Jonathan Cribb, associate director at the Institute for Fiscal Studies, said ahead of the announcement that the government will only make “small savings” when compared to returning to the universal entitlement.

Restoring the winter fuel payment will cost the government around £1.25bn. But it will continue to save around £450m through means-testing compared to the system of universal winter fuel payments.

The costs will be accounted for in the chancellor’s budget and incorporated into the next forecasts set out by the Office for Budget Responsibility (OBR).

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Finally the chancellor has seen sense. Axing the winter fuel payment for so many pensioners was a cruel cut to make.

“Millions of pensioner households faced unaffordable energy costs last winter. While the changes will provide some relief to these households, there will still be pensioners unable to afford the high cost of energy and living in cold damp homes.

“So now the government must focus on how it supports all households in fuel poverty and implements the long term measures needed to bring down the cost of energy for good.

“This includes full investment in the Warm Homes Plan to improve energy efficiency of homes and market reforms to bring down the price households pay for electricity.”

Pensioners will receive the winter fuel payment automatically if they are eligible. For those with incomes above the threshold, the payment will be automatically recovered by the HMRC.

Promises are easy to break. Sign Big Issue’s petition for a Poverty Zero law and help us make tackling poverty a legal requirement, not just a policy priority.

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. Big Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.