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Winter Fuel payments to extend to pensioners on incomes of £35,000 or less
- On June 11, 2025, the UK Government confirmed that approximately nine million pensioners residing in England and Wales, who are over 66 years old and have an income of £35,000 or less, will be granted the Winter Fuel Payment for the upcoming winter season.
- This partial U-turn follows last year's means-testing that restricted payments only to those on pension credit, reducing recipients from over 11 million to about 1.5 million and provoking criticism from Labour MPs ahead of May's local elections.
- The expanded eligibility maintains means-testing by automatically reclaiming payments from pensioners with incomes above £35,000 via the tax system, while payments will be £200 per household or £300 if someone is over 80, paid without requiring action from pensioners.
- Chancellor Rachel Reeves acknowledged that limiting winter fuel payments was a difficult choice, but necessary due to the financial situation inherited from the prior administration, emphasizing the importance of keeping the payments means-tested to ensure they remain focused and equitable.
- The U-turn will cost £1.25 billion, creating a fiscal gap the Chancellor must address possibly through higher taxes, spending cuts, or growth, while Downing Street aims to satisfy Labour MPs and address voter concerns about the cost-of-living crisis.
113 Articles
113 Articles
Political opinion: Government owes pensioners an ‘apology' over Winter Fuel, says Horsham MP
Liberal Democrat MP for Horsham John Milne has criticised the government for putting thousands of pensioners through "unnecessary hardship" last winter, following Monday's announcement that Winter Fuel Payments will be reinstated for those earning up to £35,000.
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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