Approximately nine million pensioners will qualify for the winter fuel payment in 2025, following a government decision to amend eligibility criteria. Initially, a July 2024 decision restricted payments solely to those receiving pension credit or other means-tested benefits, causing over nine million pensioners to miss out. The revised rules will allow about 75% of pensioners in England and Wales to receive the payment, with distinct criteria set for Scotland.
The winter fuel payment is intended to assist pensioners with energy costs during winter months. Prior to the July announcement, all pensioners were eligible. The government’s decision to restrict eligibility resulted in only 1.3 million pensioners receiving the payment during the winter of 2024-25, a significant decrease from about 11 million in previous years. Areas with a higher quotient of low-income pensioners saw variable uptake, with some regions having nearly half of pensioners eligible, while others had as few as 5%.
Criticism over the restricted eligibility came from various organizations and political figures, emphasizing the result for those on modest incomes and those qualifying yet not claiming pension credit. After substantial deliberation, a U-turn was announced in June, resulting in payments being accessible to those with an annual income of £35,000 or less.
The amount allocated through the winter fuel payment is £200 for pensioners under 80 years old and £300 for individuals aged 80 or older. Payments will be automated and disbursed in November or December 2025. Pensioners living in households without income-related benefits may still receive the payment, albeit distributed differently based on individual earnings.
Regarding pensions in Northern Ireland and Scotland, and the relationship between winter fuel payments and pension credit, specifics may differ, and further updates are expected as policies evolve. Pension credit typically acts as a gateway to other financial assistance, yet over half a million eligible pensioners continue to forgo claiming it.
Source: https://www.bbc.com/news/articles/c4gv632d05lo?at_medium=RSS&at_campaign=rss