Millions of older people across England and Wales are being advised to check their bank accounts for a specific six-digit reference code this winter. This is part of the rollout of the Winter Fuel Payment, which has seen its eligibility criteria significantly expanded.
Who Qualifies for the Payment?
The government has announced that approximately nine million pensioners will receive the support automatically this winter. Eligibility has been extended to all state pensioners in England and Wales with an annual income of £35,000 or less.
This new threshold means around three-quarters of pensioners will benefit. Officials state the level is set above the income of pensioners in poverty and aligns broadly with average earnings, aiming to balance support for those on lower incomes with fairness to taxpayers.
Chancellor Rachel Reeves commented on the policy, stating: "Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. We have now acted to expand the eligibility... so no pensioner on a lower income will miss out."
How to Identify the Payment in Your Account
Pensioners do not need to apply for the payment, as it is being issued automatically. The safest way to confirm receipt is to scrutinise your bank statement.
You should look for the payment reference 'DWP WFP'. This will be preceded by the payee's unique six-digit National Insurance number. The payment amounts are set at £200 per household, or £300 for households with someone aged 80 or over.
What Happens to Higher-Income Pensioners?
The system is now means-tested. An estimated 2 million individuals in England and Wales over State Pension age have taxable incomes above the £35,000 threshold.
For these pensioners, the Winter Fuel Payment will still be paid automatically this winter. However, the full amount will be automatically recovered by HM Revenue and Customs (HMRC) via the PAYE system or through Self-Assessment tax returns. No one needs to register with HMRC for this process.
The government has also confirmed that pensioners who wish to opt out of receiving the payment entirely will be able to do so, with further details to be announced.
This change marks a shift from the system in place before 2024-25, when payments were made to all pensioners regardless of income. The government states the new approach ensures help is targeted at those on lower and middle incomes, while also providing certainty for the current winter period.
Separately, over 12 million pensioners across the UK will benefit from the Triple Lock, with the State Pension set to increase by up to £1,900 during this parliament.
