Rachel Reeves has issued a warning to state pensioners that those with annual incomes above £35,000 will not qualify for Winter Fuel Payments later this year. The rules for the government support scheme have been confirmed, linking the payment to income rather than age.
Who qualifies for Winter Fuel Payments?
The winter allowance, worth either £200 or £300, is no longer universal for all over-65s. Pensioners with incomes below £35,000 will keep the cash, while those on higher incomes initially receive the payment but must repay it later.
Winter Fuel Payments normally land in bank accounts each November. Those under 80 receive £200, while over-80s get £300, reflecting that older people tend to spend more time at home.
Background to the changes
The money is designed to help older people on lower incomes keep their homes warm during colder months. However, changes to eligibility criteria over recent years have damaged the government. Households with higher incomes are judged to be financially comfortable enough to cope without the bonus, and there was a view that money was previously being wasted on those who didn't need it.
Labour was forced to backtrack after winning the 2024 general election after initially cutting payments for all but the very poorest, leaving many on low incomes to go without. The scale of the backlash forced ministers into a U-turn, but it's a decision Labour never fully recovered from.
