The Department for Work and Pensions (DWP) has confirmed significant changes to the Winter Fuel Payment eligibility for 2025, which will affect millions of pensioners in England and Wales. While the payments are no longer universal, the eligibility has been expanded compared to last year, benefiting more pensioners.
What Are the New Eligibility Rules for Winter Fuel Payments?
In previous years, Winter Fuel Payments were given to all pensioners over the State Pension age, regardless of their income. However, last year, the government introduced means testing, limiting eligibility to those receiving certain benefits like Pension Credit. This excluded around 10 million pensioners.
As of June 10, 2025, the government has confirmed a major policy shift. Now, approximately 9 million pensioners in England and Wales will be eligible for Winter Fuel Payments this winter. Though the scheme is no longer universal, the eligibility has expanded for those with lower incomes.
Under the new rules, pensioners with an income below £35,000 will receive the full Winter Fuel Payment. The amount varies depending on the pensioner’s age:
- £200 for those aged 65 to 79.
- £300 for those aged 80 or over.
What About Pensioners Earning Above £35,000?
Pensioners earning over £35,000 will still receive the Winter Fuel Payment, but the government will reclaim the amount via the tax system.
- How will this work? HMRC will automatically recover the overpaid amount through PAYE (Pay As You Earn) or the self-assessment tax return process.
- It is estimated that around 2 million individuals over State Pension age have taxable incomes above £35,000. These individuals will receive the payment, but it will be deducted from their earnings or tax return later in the year.
How Much Will Pensioners Receive?
The amount a pensioner receives will depend on their age:
- £200 for those aged 65 to 79.
- £300 for those aged 80 and above.
These payments will be automatically sent out, meaning eligible pensioners don’t need to take any action to receive their Winter Fuel Payment.
What Counts as Taxable Income?
The new £35,000 income threshold refers to taxable income, which includes:
- Earnings from work
- Retirement pensions
- Jobseeker’s Allowance
- Widow’s Benefit
- Occupational pensions
- Personal and annuity pensions
- Taxable interest from savings
- Rental property income
- Carer’s Allowance
- Statutory sick pay
- Maternity, paternity, and adoption pay
- Employment and Support Allowance
- Incapacity Benefit
Note: The Winter Fuel Payment eligibility is based on individual taxable income, not household income. This means that if one person in a couple earns more than £35,000, they won’t be eligible, but the other person may still qualify if their income is below the threshold.
Will I Need to Register with HMRC?
If your taxable income exceeds the £35,000 threshold, you do not need to register with HMRC to have the payment reclaimed. HMRC will automatically collect the overpaid amount via your tax system.
However, if you don’t want to receive the payment, you will be able to opt out. More details on how to do this will be provided in the future.
Key Takeaways
- Eligibility Expanded: Around 9 million pensioners will now receive the Winter Fuel Payment, compared to last year’s more restrictive criteria.
- Income Limit: Only those with a taxable income below £35,000 will receive the full £200 or £300 payment.
- Automatic Recovery for High Earners: Pensioners earning above £35,000 will still receive the payment initially but will have it reclaimed through the tax system.
- No Action Needed for Eligible Pensioners: Payments will be sent out automatically to those who meet the new criteria.
FAQs
Who is eligible for the Winter Fuel Payment in 2025?
Pensioners in England and Wales with a taxable income of £35,000 or less will be eligible for the payment. Those with an income above this threshold will still receive it, but it will be reclaimed via taxes.
How much will the Winter Fuel Payment be in 2025?
Pensioners aged 65 to 79 will receive £200, while those aged 80 or above will receive £300.
Do I need to do anything to receive the Winter Fuel Payment?
No, pensioners who meet the eligibility criteria will receive the payment automatically. However, if your income is over £35,000, the amount will be reclaimed via taxes.
What counts as taxable income for the Winter Fuel Payment?
Taxable income includes earnings, pensions, jobseeker’s allowance, rental income, and other types of income.
How can I opt out of receiving the Winter Fuel Payment?
If you don’t want to receive the payment, you will be able to opt out. Further details on how to do this will be provided soon..