Overview

• The Labour government reversed last summer’s restriction and now extends the benefit to state pensioners earning up to £35,000, bringing around nine million people into the scheme.
• Households with someone of State Pension age will be paid £200, rising to £300 if a member is aged 80 or over, with most payments landing in bank accounts from November without any claim form.
• HMRC will adjust tax codes to claw back payments from individuals whose taxable incomes exceed £35,000 via PAYE or self-assessment, and higher earners can opt out before disbursement.
• Qualification depends on being of pension age and resident in the UK during the week of September 15–21, 2025, and a small number of deferred or returning pensioners must update their DWP details.
• The targeted scheme carries a £1.25 billion price tag and trims £450 million compared with universal payouts, and there will be no extra payment for those who missed out last winter.