Pensioners to See Winter Fuel Payments Widened After Controversial Cut-Off
The government is about to loosen the rules on who gets winter fuel payments, aiming to include more older people in time for the colder months. Last year’s sharp cut to the scheme, which slashed eligibility to just 1.3 million pensioners from over 11 million, made headlines and left plenty of people out in the cold. Chancellor Rachel Reeves now says the criteria will soon be broadened, although the payments won’t go back to being universal.
Winter fuel payments—ranging from £200 to £300 a year—once landed automatically in the pockets of all seniors over 66. That changed when ministers scrapped the blanket approach to save money, deciding only the poorest retirees—those on Pension Credit—would qualify. Quite the shake-up, and one that reportedly saved a hefty £1.5 billion, but also knocked millions of pensioners out of the running overnight.
For context, Pension Credit is aimed at low-income pensioners, those with annual incomes somewhere below £12,000 to £18,000. This clearly left many folks on modest means but just above the cut-off feeling unfairly excluded. Pensions Minister Torsten Bell said the old system meant real 'millionaires' were getting help they certainly didn’t need, but he admits the government is now exploring how to find a fair middle ground for the coming winter.
Means-Testing Here to Stay but Criteria to Soften
Reeves made it clear the Treasury isn’t about to reopen the taps completely. There’s no appetite to go back to a universal payout. The big worry is striking a balance: How do you expand winter fuel payments for those who really need help without blowing a new hole in the nation’s finances or sending cash to those who won’t miss it?
The next move? Officials are weighing up financial thresholds and looking for ways to stretch eligibility—think more pensioners with just enough income to miss out on Pension Credit, but still tight enough to struggle with winter bills. The government is treading carefully. Reeves admitted last year’s changes were tough, but said they were needed to repair public finances. At the same time, she’s facing plenty of pressure to make sure seniors aren’t stuck choosing between heating and eating this winter.
For those who still won’t qualify, all is not lost. Extras like Cold Weather Payments, the Warm Home Discount that knocks £150 off energy bills, and local Household Support Funds are there as backup. The situation’s also a bit different for Scottish residents, who get payments via the Department for Work and Pensions (DWP), but with unique rules compared to England.
So, more pensioners should see some relief on energy bills soon, but it’s clear the government is choosing targeted help over a simple one-size-fits-all solution.
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