Winter Fuel payments to extend to pensioners on incomes of £35,000 or less
- The UK government announced a £1.25bn U-turn in June 2025 to extend winter fuel payments to pensioners earning £35,000 or less this winter in England and Wales.
- This reversal follows last year's means-testing that limited payments only to pension credit recipients, which caused backlash amid poor local election results in May 2025.
- Around nine million pensioners will automatically receive payments worth up to £300, while those above the income threshold will get payments clawed back via tax.
- Chancellor Rachel Reeves acknowledged that limiting winter fuel payments was a difficult choice but necessary to maintain a fair and targeted system without extending benefits to the wealthiest pensioners.
- The U-turn results in a £1.25 billion shortfall in public finances, which the Chancellor plans to address during the upcoming Budget by potentially increasing taxes, reducing spending in other areas, or encouraging economic growth, while continuing to support pensioners affected by the cost-of-living crisis.
103 Articles
103 Articles
Ed Miliband says Reeves ‘deserves credit’ for winter fuel payment U-turn
Rachel Reeves “deserves credit” for her U-turn on winter fuel allowance, Ed Miliband has said while denying that it was wrong to make the initial cut. The Treasury announced on Monday that it would restore the allowance to all pensioners with an income of £35,000 or less a year, amid public outrage over cut that was the first act of the Labour government. Reeves had previously removed the benefit from all but the poorest pensioners – those on pe…
Martin Lewis issues urgent winter fuel payment warning after government U-turn
Martin Lewis has issued an urgent winter fuel payment warning after the government announced a major U-turn. In a decision which will cost the Treasury £1.25bn, Chancellor Rachel Reeves announced that all those who qualify for the state pension on incomes of £35,000 or less will now qualify for the winter fuel payment. The U-turn on winter fuel means that around nine million – or three-quarters – of all pensioners will get the payment. Around tw…
Reeves is playing fast and loose with public finances – just look at her own words
I will admit that a bulk of this column was written for me, quite handily by Labour’s own Treasury team. After yesterday’s politically ‘ginormous’ U-turn by Rachel Reeves on winter fuel payments – returning nine million OAPs to the benefit – I thought I would take a look back at some of the economic arguments used in the House of Commons by the Chancellor and her Treasury team to defend their policy, and create a political headache over the past…
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