The UK government may announce plans to restore Winter Fuel Payments to more pensioners as early as next month. Deputy Prime Minister Angela Rayner hinted that the Spending Review on June 11, 2025, led by Chancellor Rachel Reeves, could reveal details about this change.
What Is the Winter Fuel Payment and Why Was It Cut?
Winter Fuel Payment is an annual payment of up to £300 given to pensioners to help with heating costs during colder months. Last year, the Labour government limited this payment to only those pensioners receiving means-tested benefits like Pension Credit or Universal Credit (for mixed-age couples). This move was part of efforts to save around £1.5 billion a year and fix a reported £22 billion gap in public finances left by the previous Conservative government.
Political Reactions and Future Plans
At Prime Minister’s Questions, Sir Keir Starmer said he wants to restore Winter Fuel Payments to “more pensioners” as the UK’s economy improves. Many expected this announcement to happen in the Autumn Budget, but Angela Rayner suggested the Spending Review in June could bring earlier news.
Rayner told Sky News: “I think the Chancellor will set it out when we’ve got the opportunity, at the first opportunity.” She added she hopes the Chancellor will confirm the restoration soon.
Conservative leader Kemi Badenoch criticised the cut and called for an immediate restoration, saying her party “would never have taken the winter fuel payment away.”
Meanwhile, the Scottish Government has already promised that all pensioners north of the border will get at least £100 this winter, with some receiving up to £305 by November 30.
Options for Restoring the Winter Fuel Payment
Officials are considering several ways to bring back the payment:
1. Full Reversal
This would restore payments to all pensioners who received them before the cut, making 11 million households eligible again. This would cancel out the £1.5 billion saved last year.
2. New Threshold or Means Test
A new income threshold could allow more pensioners not currently claiming Pension Credit to apply for the payment. Raising the threshold 20% above Pension Credit levels could add 400,000 households at a cost of about £100 million. One idea is to make pensioners repay some of the money through tax returns if they earn above a certain level.
3. Extend Eligibility to Disability or Housing Benefit Recipients
Expanding payments to pensioners on disability or housing benefits could help 1.3 to 1.8 million more families. This would cost between £300 million and £500 million annually and is seen as a sensible approach.
4. Pay Individuals Instead of Households
Currently, the payment is given per household. Changing to individual payments would mean pensioners with low income but a higher-earning spouse could still receive it. However, couples might get double what singles receive under this method.
Challenges Ahead
Some delays could happen this winter due to outdated computer systems that process the payments. Ministers will have to manage this carefully to make sure pensioners get the support they need on time.
With the cost of living continuing to rise, restoring the Winter Fuel Payment is a key priority for the government. Deputy Prime Minister Angela Rayner’s comments suggest that more pensioners could soon get financial help with heating costs, possibly announced at the upcoming Spending Review. Various options are being considered to balance helping more people and managing government spending. The final decision will affect millions of pensioners across the UK in the coming months.
FAQs
What is the Winter Fuel Payment?
It is an annual payment of up to £300 to help pensioners with heating costs during the winter months.
Why was the Winter Fuel Payment cut last year?
The payment was limited to pensioners receiving means-tested benefits to save £1.5 billion and address a budget gap.
When might the Winter Fuel Payment be restored to more pensioners?
Details could be announced at the Spending Review on June 11, 2025, according to government officials.
What are the options for restoring the Winter Fuel Payment?
Options include a full reversal, introducing new income thresholds, extending eligibility to disability or housing benefit recipients, or paying individuals instead of households.
Could there be delays in restoring the payment?
Yes, aging computer systems might delay the rollout, affecting the timing of payments this winter.
It’s about time as labour collect 1.1 trillion pounds in tax each year how will this affect me for winter fuel payments as i.m 80 in September
Pensioners who are millionaires or near millionaires should not be given the winter fuel allowance as they do not need it, give to the ones who need it.
Should never have stopped the winter fuel payments to pensioners in the first place. Labour are now toast, because of their lies and deceit in the general election. The British people now want total change, we need Reform UK to change direction of our great country, while there is still time.