Over three-quarters of pensioners will be eligible for winter fuel payments this year, as Rachel Reeves discloses key details of the Government’s policy reversal. Pensioners with an income of £35,000 or less in England and Wales will receive the benefit this winter, a significant increase from the current cut-off point of £11,500.
This means that nine million pensioners will now qualify for the winter support. Approximately two million pensioners with incomes exceeding £35,000 will have the payment automatically reclaimed or can choose not to receive it.
Last month, Keir Starmer expressed his desire for more pensioners to be eligible for the assistance, which is worth up to £300. The Prime Minister faced severe criticism after introducing a means-tested system for the winter fuel allowance last year, which had previously been a universal benefit. Roughly 10 million pensioners lost the support last winter, reports the Mirror.
Has the Prime Minister has made the right decision to reinstate winter fuel payments to more pensioners? Have your say in our comments section.
The changes announced this week will cost around £1.25 billion. The Treasury stated that the new means-testing system is expected to save approximately £450 million, compared to the universal system. No pensioner will need to take any action as they will automatically receive the payment this winter. Payments of £200 per household, or £300 per household where there is someone over 80, will be made.
OAPs earning over the £35,000 threshold will see the full amount of their winter fuel payment reclaimed automatically through PAYE or their Self-Assessment tax return. Pensioners who prefer not to receive the payment can opt out, with the DWP working on a straightforward system for this purpose.
‘No pensioner on a lower income will miss out’
Chancellor Rachel Reeves commented: “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.”
Last month at PMQs, the Prime Minister expressed his desire to expand eligibility for winter fuel payments amidst signs of economic recovery, stating he wants to ensure “more pensioners are eligible for winter fuel payments”. This unexpected pledge came as the government faced increasing calls to reverse its decision to withdraw the payment from all but the poorest pensioners – those in receipt of Pension Credit.
Labour tensions have escalated following Reform UK’s significant victories in the English local elections this May and a narrow by-election win in the traditionally Labour-dominated area of Runcorn and Helsby by just six votes.
In response to the policy reversal, Dennis Reed, director of the pensioner advocacy group Silver Voices, hailed the declaration as “fantastic news for older people in the UK”. He highlighted the significance of the U-turn, noting that the payment will now be automatically distributed to all pensioners without the necessity of a claim, ensuring that it reaches everyone who found last winter challenging.
Joanna Elson CBE, Chief Executive of Independent Age, expressed her satisfaction with the news. However, she added: “While the changes to the Winter Fuel Payment are positive, they are not a silver bullet that will end pensioner poverty. Around 2 million older people still live in poverty, and measures must be taken to ensure the long-term financial security of all people in later life. There needs to be a cross-party consensus on the adequate income needed in later life to avoid financial hardship.”
Has the Prime Minister has made the right decision to reinstate winter fuel payments to more pensioners? Have your say in our comments section.
