Winter fuel payments fell by 9.3 million before U-turn

"But a Treasury decision to means-test the payment led to the much lower number of recipients last year, new official figures from the Department for Work and Pensions (DWP) show. That policy has now been scrapped, with a U-turn by the chancellor in June meaning that the vast majority of pensioners will again get the payment - worth up to about 300 per household - this coming winter."

"The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year. But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit. In Scotland, ministers planned to mitigate some of those cuts. Chancellor Rachel Reeves said the move was needed owing to the state of the public finances."

"In areas with a higher proportion of low-income pensioners, many still received the winter fuel payment. In the Tower Hamlets area of London, some 49% of pensioners still received the payment. Whereas in Hart, in Hampshire, and Wokingham, in Berkshire, only 5% received it, compared with an England and Wales average of 13%. Following widespread anger and a backlash from some Labour MPs who blamed the policy for their party's poor showing in local elections in May, Reeves announced a partial reversal."

The number of people receiving winter fuel payments fell to 1.3 million after a Treasury decision to means-test the benefit, down from about 11 million previously across England, Wales and Scotland. New figures from the Department for Work and Pensions show the reduced recipients last year. The government scrapped the means-test after a June U-turn by the chancellor, restoring the payment worth up to about £300 per household this coming winter. The July 2024 policy had limited payments in England and Wales to low-income pensioners on specified benefits, while Scotland planned partial mitigation. New eligibility now covers pensioners with annual incomes of £35,000 or less.

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