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UK Reinstates Fuel Payments for Pensioners Earning Up to £35,000

The reversal will cost £1.25 billion in England and Wales, following widespread public and political backlash.

A volunteer at a food bank packaging supplies. Credit: IFAN Mary Turner The Welcome Centre
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Overview

  • Pensioners aged 66 and over on annual incomes of £35,000 or less will receive automatic winter fuel payments of £200, or £300 for those aged 80 and above.
  • The expanded scheme will cover around nine million pensioners and marks a full U-turn on last summer’s decision to limit payments to Pension Credit claimants.
  • Recipients with incomes above £35,000 will have their payments clawed back through HMRC via PAYE or self-assessment and can opt out to avoid repayment.
  • Treasury estimates show the means-tested approach will save roughly £450 million compared with a return to universal payments.
  • Charities warn that pensioner poverty remains acute and Labour MPs are urging ministers to reverse planned disability benefit cuts and scrap the two-child benefit cap.