Nine million retirees are set to receive assistance with their winter heating costs starting in November. The Department of Work and Pensions has unveiled further information on the Winter Fuel Payments program for this year, following a significant policy reversal regarding eligibility due to widespread criticism.
Approximately 80% of elderly individuals in England and Wales will now qualify for aid. Eligible beneficiaries will be notified in October or November via letter detailing their entitlement of either £200 or £300 per household. The majority will automatically receive the payment between November and December.
It is crucial for individuals to be aware of the automatic payment process to avoid falling victim to fraudulent schemes offering bogus links and phone numbers for claiming benefits. Remember, there is no need to apply for the Winter Fuel Payment.
If the payment has not been received by January next year, a claim can be made until March 31, 2026. Contact the Winter Fuel Payment helpline at 0800 731 0160 for assistance.
While all pensioners will receive the payment, those with an annual income exceeding £35,000 will have the amount reclaimed. Individuals above this income threshold can choose to opt-out by the September 15 deadline; otherwise, the sum will be recouped through the tax system.
For individuals still under the PAYE system, including those with ongoing earnings or private pensions, HMRC will collect the payment automatically by adjusting their tax code. However, if a self-assessment tax return has been submitted, HMRC will incorporate the payment into their tax return as part of their income, starting from the 2025 to 2026 tax year due by January 31, 2027.
To qualify for the winter fuel payment, at least one member of the household must have been born before September 22, 1959, and reside in England or Wales. Those above State Pension age may receive £200, and those over 80 could be eligible for £300 towards their heating costs, per household.
Individuals receiving Pension Credit, Universal Credit, or income-related Employment and Support Allowance will have one person in the household receive the full winter fuel payment.
The winter fuel payment is calculated on a per household basis, with only the portion belonging to individuals with incomes exceeding £35,000 being clawed back. For instance, if a couple is both over 80 but one has an income above the threshold, the higher earner will forego the payment while the other will receive a reduced amount.
Pensions Minister Torsten Bell affirmed the government’s commitment to aiding pensioners, citing the annual state pension increase of £1,900 for millions of retirees during this parliamentary term.
