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UK Expands Winter Fuel Payment to Pensioners Earning Up to £35,000

Chancellor Rachel Reeves reversed the previous policy after criticism over its exclusion of vulnerable pensioners.

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Overview

  • The U-turn restores payments for those with annual incomes up to £35,000, extending support to approximately nine million pensioners in England and Wales.
  • Winter fuel payments will be automatically distributed this winter, with HMRC reclaiming funds from pensioners earning above the new threshold.
  • Households including someone between state pension age and 79 will receive £200, while those with someone aged 80 or over will receive £300.
  • The revised scheme is projected to cost £1.25 billion and deliver £450 million in savings through targeted means-testing.
  • Charities and advocacy groups have welcomed the expansion but warn further measures are needed to tackle pensioner poverty.