The Department for Work and Pensions (DWP) has confirmed the new rules for the Winter Fuel Payment, specifically for pensioners who live together as a couple.
This change has been announced after a government u-turn, ensuring that nine million pensioners across England and Wales will receive the Winter Fuel Payment this winter.
Key Changes to Winter Fuel Payments
In a recent update on June 11, the DWP announced that all pensioners in England and Wales with an income of £35,000 or less will automatically receive a Winter Fuel Payment.
These payments will be between £200 and £300 per household, depending on the age of the pensioner. However, there is a notable difference in how the payment is handled this year compared to last.
Last year, the Winter Fuel Payment was means-tested for the first time, and only pensioners receiving specific benefits were eligible. This meant that pensioners had to meet an income threshold of just £11,600 to qualify.
The new rule increases the income eligibility to £35,000, meaning more pensioners will receive this financial support this year.
How the Payment Works for Couples
The Winter Fuel Payment will be given to households, meaning that even if two pensioners are living together, they will only receive one payment of up to £300. For example, if there are two pensioners over the age of 80 living in the same house, they will each receive £150.
However, the key point is that income is assessed individually. So, if one pensioner in a couple earns above £35,000, their share of the payment will be reclaimed through the tax system.
This can be done through PAYE or the self-assessment tax system. Their partner, however, can still receive their share as long as their income is below the £35,000 threshold.
Martin Lewis, a well-known financial expert, has welcomed this new system, calling it a good arrangement compared to what was initially expected.
Originally, it was thought that the payment would be based on the higher earner’s income in the couple, but the new rules separate each pensioner’s earnings.
Special Rule for Pension Credit Claimants
While the new system will generally result in pensioners sharing the payment, there’s an important exception. If a couple is claiming Pension Credit, they will receive the full Winter Fuel Payment amount (either £200 or £300, depending on age) in one lump sum.
In this case, the clawback (reclaiming the payment through taxes) will not apply, as Pension Credit recipients will not earn enough to be affected by this rule.
The new rules for the Winter Fuel Payment bring good news for many pensioners this winter. Those with an income of £35,000 or less are now automatically eligible for the payment.
Couples will typically receive one payment per household, though their individual incomes are assessed separately, and any clawback will only apply to the higher earner.
For those claiming Pension Credit, there’s no split in the payment, and they won’t have to worry about any reclaim through taxes.
FAQs
Who is eligible for the Winter Fuel Payment in 2025?
Pensioners in England and Wales with an income of £35,000 or less are eligible for the Winter Fuel Payment. Payments range from £200 to £300 depending on age.
How is the Winter Fuel Payment calculated for couples?
The Winter Fuel Payment is given per household, with one payment of up to £300 for couples. Each pensioner’s income is considered separately, and clawbacks apply if either earns above £35,000.
Do couples claiming Pension Credit get the Winter Fuel Payment?
Yes, couples claiming Pension Credit will receive the full Winter Fuel Payment in one lump sum without any clawback, even if their income is above the £35,000 threshold.
Will the Winter Fuel Payment be affected by taxes?
If a pensioner’s income exceeds £35,000, their share of the Winter Fuel Payment will be reclaimed through taxes, either via PAYE or self-assessment.
When will the Winter Fuel Payment be received?
Payments will be made automatically to eligible pensioners during the winter. Specific dates will be communicated by the Department for Work and Pensions.
