The government has officially announced a U-turn on its controversial scrapping of the Winter Fuel Payment for millions of UK pensioners.
Its policy had limited the payment of £200 (or £300 for households with someone over 80) to all but the poorest pensioners, with the number of eligible people dropping by about 10 million. The move was widely criticised and had been identified as one of the main reasons for a collapse in public support over the past few months.
The payments will be reinstated as an automatic universal benefit payment which will then be recouped when better-off pensioners fill in their tax returns.
This means all pensioners with an income of £35,000 or less (an estimated nine million) will now be eligible for the Winter Fuel Payment. This still means that the most well-off pensioners won’t receive the payment, and the government estimates this will still save about £450 million, as opposed to the £1.5 billion estimated when the policy was first implemented.
Rachel Reeves, the chancellor, said: “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.”
Do I have to do anything to get the Winter Fuel Payment?
No, everyone will receive it automatically. If you’re eligible for it, you won’t have to repay it, but if you’re classed as ineligible, you’ll automatically repay it via PAYE or your Self-Assessment return later on.
You can also opt out of receiving it entirely, with the process to be confirmed.
