The UK government has confirmed that all individuals of State Pension age in England and Wales with annual incomes of £35,000 or less will automatically receive a Winter Fuel Payment this coming winter.
- Around nine million pensioners—over three *-quarters in England and Wales—will be eligible.
- The scheme shapes up like this:
- £200 per household, or
- £300 if someone inside is aged 80 or above
- Households where income is above £35,000 still receive the payment but will have it reclaimed via HMRC (through PAYE or tax returns).
- Pensioners who don’t want the payment can opt out—details on how to do this are coming soon.
- The change will cost approximately £1.25 billion, but because around two million higher earners will have their payment reclaimed, net savings will be around £450 million compared to universal payments.
- No one needs to apply—payments are made automatically.
- The government states it can do this without increasing long-term borrowing, with precise funding confirmed in the upcoming Budget.
Chancellor Rachel Reeves emphasized that this approach ensures fair and focused support for those on lower and middle incomes, while still protecting taxpayers. (moneysavingexpert.com, gov.uk)
- Who’s getting it?
Any person at State Pension age by 21 September 2025 in England and Wales with income up to £35,000 in the qualifying week (15–21 Sept 2025). - How much?
- £200 per household (if under 80), or
- £300 if someone in the household is aged 80 or over.
- What about high earners?
They’ll get the payment automatically but will have it recovered through HMRC. There's also an option to opt out up front so you don't have to pay it back later. (gov.uk) - Why the change?
Last winter, only pensioners on Pension Credit got it—only about 1.5 million. That left many feeling excluded. This time nine million will benefit *—a much more inclusive scheme. - Cost & funding
The reversal costs £1.25 billion, but because of means-testing, the net additional cost is around £450 million—not funded by new borrowing. Final details will be confirmed in the Budget. - When’s the qualifying window?
If you reach State Pension age by 21 September 2025, you qualify for this winter’s payment. (gov.uk)
What You Need to Do
- Nothing – payments are automatic.
- If you earn more than £35,000 and don’t want the hassle of reclaiming it, you will have the option to opt out later on.
- Keep an eye on the Budget announcement in autumn for full financial details and any official timelines.
In short: The Winter Fuel Payment is back for most pensioners this winter, with smart targeting to ensure fairness and protect public finances.
