Martin Lewis: The Chancellor is restricting Winter Fuel Payment to just those on benefits – that’s too narrow a group
Winter Fuel Payments – a tax-free payment made to all pensioners to help with winter energy bills – are to be restricted to those on benefits and Pension Credit, the Chancellor Rachel Reeves has announced. But MoneySavingExpert.com founder Martin Lewis has urged the Government to include a wider group, and to leave no stone unturned ensuring the 800,000 eligible who miss out on Pension Credit get it.
Until now, Winter Fuel Payments worth up to £300 have been made available to EVERYONE above State Pension age in the UK (most recently, this included those born on or before 24 September 1957) – but this will no longer be the case from this winter.
Martin Lewis: 'It's being squeezed to too narrow a group'
Martin Lewis, founder of MoneySavingExpert.com, said: "The targeting of Winter Fuel Payments is too narrow with the winter we have coming. Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.
"The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions.
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit. Yet again, those just above the thresholds will be hardest hit.
"This is often justified as there's a 'lack of household income data' to allow other targeting. However, there's a usable precedent from the emergency energy crisis measures announced in April 2022, which I'd urge the Government to look at.
"Then, a payment was made to homes in council tax bands A to D – as an imperfect but workable proxy for lower household incomes. That'd allow an additional group of lower to middle-income pensioners to keep the payments and mitigate bill shocks. Councils' discretionary funds could also be funded as in April 2022, for the limited numbers who still need help but don't qualify.
"Plus, with this announcement, the Government has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don't get it, are informed, educated and helped through the process. It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner – and if possible proactively and personally contact people.
"Pension Credit is a crucial gateway benefit, giving access to a host of other entitlements, and now with the link to the Winter Fuel Payment, it makes it even more important to ensure fewer miss out."
How Winter Fuel Payments are changing
Starting this winter (2024/25), you'll only be able to get a Winter Fuel Payment if you're:
Over State Pension age; AND
Receiving one of the following benefits:
- Income Support;
- Income-based Jobseeker's Allowance;
- Income-related Employment and Support Allowance;
- Pension Credit; or
- Universal Credit (for example, through a joint claim with your partner).
These changes will apply across England, Northern Ireland, Scotland and Wales. The UK Government announced the changes in England and Wales, with the devolved governments in Northern Ireland and Scotland later following suit.
The Government told us the amount you can get WON'T change – so, if eligible, you'll still get up to £300, depending on your circumstances:
If between the qualifying dates of 16 and 22 Sept 2024 you're on an eligible benefit AND: | If you were born between 23 Sept 1944 and 22 Sept 1958 | If you were born on or before 22 Sept 1944 |
|---|---|---|
You live alone (or none of the people you live with qualify) | £200 | £300 |
You live with a partner under 80 and jointly claim any of the benefits | £200 – only one of you will get this | £300 – only one of you will get this |
You live with a partner 80 or over and jointly claim any of the benefits | £300 – only one of you will get this | £300 – only one of you will get this |
You lived in a care home for less than 13 weeks including the week of 16 to 22 September 2024 | £200 | £300 |
Note: An earlier version of the table above listed payment amounts per person, and incorrectly listed lower amounts for care home residents. These were based on rates from previous years, which the Government had initially told us wouldn't change. The Government has since confirmed the correct amounts as shown above.
Scotland's replacement scheme has been delayed
The Scottish Government had previously announced plans to replace Winter Fuel Payments from winter 2024 with its own scheme called the 'Pension Age Winter Heating Payment'. These new payments would be worth up to £300 and were originally intended to be paid to everyone over State Pension age.
However, following the Chancellor's announcement, the Scottish Government has confirmed that the Pension Age Winter Heating Payments will also be means-tested when they launch in winter 2025.
Responding to a written Parliamentary question about the change, Shirley-Anne Somerville MSP said: "This has been a very difficult decision and not one we want to, or expected to, be making. However, despite all efforts to review our financial position it is a necessary decision when faced with such a deep cut to the budget and in the most challenging financial circumstances since devolution."
Check you're not missing out on help you're entitled to
The upcoming change to Winter Fuel Payment eligibility means it's more important than ever to make sure you claim what you're entitled to.
As Martin notes above, over 800,000 people who are eligible for Pension Credit don't currently get it, and it's often a key to qualifying for other help – so may unlock £1,000s of extra support. Use our 10-minute benefits check to see what you could get.
If you're struggling, it's also worth contacting your council to see what help it can offer. Under the Household Support Fund, which was recently extended to April 2025, councils in England can access funding to help those most in need with the cost of daily essentials, including energy bills. Local authorities in Northern Ireland, Scotland and Wales run similar schemes, which will also receive additional funding.
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21 January 2025
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