Winter Fuel Payments have been reinstated for millions of pensioners, as long as your income is beneath £35k
The decision to reverse means-tested requirements for Winter Fuel Payments came after months of criticism towards the government(Image credit: Getty Images)
In a major revision to previously proposed cuts, the UK Government has confirmed that the Winter Fuel Payment will continue to be available to over three-quarters of pensioners, but no longer as a fully universal benefit.
From winter 2025–2026, all pensioners in England and Wales with an annual income of £35,000 or less will receive the payment. Those above this threshold will still be issued the payment automatically, but it will be recovered via HMRC, or they may opt out entirely.
This policy is expected to help around 9 million pensioners in England and Wales with energy price rises this winter.
Reeves: “No pensioner on a lower income will miss out”
Responding to criticism and public concern over last year’s cuts, Reeves confirmed: “We have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out.
The Chancellor added: "This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter."
Reeves called the reversal "a fair and responsible approach" claiming it will help those "who need it most".
What is the Winter Fuel Payment?
The Winter Fuel Payment is an annual, tax-free benefit from the government that helps older people with heating costs during the colder months.
For winter 2025–2026:
Payments of £200 per household, or £300 where someone is over 80, will be made automatically between November and December.
Confirmation letters will be sent in October or early November.
No application is required. If you do not receive notification by mid-November, contact the Winter Fuel Payment Centre or visit GOV.UK.
Keir Starmer: “We have listened”
Starmer announced the means-tested reversal at PMQs(Image credit: Getty Images)
During a session of Prime Minister's Questions in the House of Commons Prime Minister Keir Starmer said the U-turn was made as "no pensioner should be left in the cold".
This followed months of public pressure and internal party opposition to the cutting of Winter Fuel Payments and introduction of a means-tested criteria.
Starmer stated: “The Winter Fuel Payment will not be means-tested. It is a universal promise that we intend to keep.”
He added that the Government would seek alternative ways to balance public finances without targeting essential winter support: “Yes, we must be responsible with public money - but we will not do so by penalising those who have worked hard all their lives.”
Who qualifies for the Winter Fuel Payment in 2025?
You can now claim the Winter Fuel Payment if:
You were born before 23 September 1958
You lived in the UK during the qualifying week (usually in late September)
Your annual income is £35,000 or less
If you earn more than £35,000, you will still receive the payment initially, but HMRC will recover the amount automatically via PAYE or Self-Assessment. Alternatively, pensioners may opt out of receiving the payment altogether (details pending).
What prompted the reversal of the means-tested Winter Fuel Payment?
The number of those receiving the Winter Fuel Payment dropped from 11.4 million to 1.5 million last year, at a time when the Energy Price Cap also dropped(Image credit: Getty Images)
However, the proposal faced widespread opposition:
Martin Lewis, founder of MoneySavingExpert, said it would “risk tipping millions into fuel poverty.”
Labour MPs like Jon Trickett voted against their own party’s motion, warning of “unforgivable consequences.”
Public protests and petitions gathered over 1 million signatures within weeks.
The reversal means the Winter Fuel Payment remains non-means tested and will cover approximately 11 million pensioners again this year.
In addition to maintaining the Winter Fuel Payment, the Government is set to expand the Warm Home Discount Scheme for the 2025/26 winter season and also expand their Warm Homes Plan to upgrade the energy efficiency of 5 million homes.
What should you do if you think you qualify?
If you're eligible, no application is needed. The Winter Fuel Payment will be made automatically between November and December 2025. You’ll receive a confirmation letter in October or early November.
If you don’t receive a notification by mid-November, contact the Winter Fuel Payment Centre or visit GOV.UK.
Get the Homebuilding & Renovating Newsletter
Bring your dream home to life with expert advice, how to guides and design inspiration. Sign up for our newsletter and get two free tickets to a Homebuilding & Renovating Show near you.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
