The Department for Work and Pensions issues Winter Fuel Payments of up to £300 to eligible pensioners, but those earning over £35,000 or failing to report changes may need to repay funds
Millions of pensioners are set to see Winter Fuel Payments land in their bank accounts, a financial boost designed to help with escalating energy costs, which will be distributed to millions of over-65s throughout November and December.
In the past, all pensioners were eligible for this payment, but last year the Labour government limited eligibility to only those claiming certain means-tested benefits, such as Pension Credit. This significantly cut down the number of recipients to a mere 1.5 million people who were entitled to help with their winter heating bills.
However, this year, after significant pressure from pensioner organisations, the criteria have been revised again. Chancellor Rachel Reeves has reinstated the payment for pensioners earning up to £35,000, expanding eligibility to nine million.
Anyone born before 22 September 1959 will automatically receive between £100 and £300. However, the government has stated that under certain circumstances, recipients must return the funds, according to reports from the Mirror.
If your annual income exceeds £35,000, reports the Express.
If your yearly income is more than £35,000, you must repay the money unless you have already opted out of receiving it. According to HMRC, this threshold is based on personal income.
It states: “If your total personal income for the tax year is £35,000 or less – you’ll keep your payment, more than £35,000 – HMRC will take back your payment.
“If you live in a household with someone else who has also received a payment, we’ll look at each person’s individual income separately. For example, if you earn £36,000 and your partner earns £22,000, we’ll take back your payment, but your partner will keep their payment.”
Failure to report changes
Under government rules, you will be required to repay money if you fail to report a change in circumstances immediately. This could be if you have moved house or no longer receive a benefit that made you eligible for the funds.
Providing incorrect information
If you received the payment after providing incorrect details during your application, then you will have to pay back the money. This could be due to errors such as providing an incorrect date of birth on your application.
Overpayment due to error
Mistakes can be made by the DWP or HMRC resulting in people being overpaid. If this is the case, you will need to repay any amount to which you are not entitled.
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