In a significant policy shift announced earlier this week, the Government has confirmed that Winter Fuel Payments will be reinstated for all pensioners this winter. This follows months of campaigning and concern regarding the initial decision to means-test the benefit.
Originally, the payment (worth between £200 and £300) was restricted only to those receiving Pension Credit. However, facing a harsh winter forecast and public pressure, the Chancellor has reversed this decision to ensure vulnerable older people do not go without heat.
The “Clawback” Caveat There is, however, an important catch that all households need to be aware of. While the payment is being issued broadly again to ensure speed of delivery, it will now be subject to a tax clawback for higher earners.
- If you earn under £35,000: You will receive the full payment automatically and keep it all.
- If you earn over £35,000: The payment will be treated as taxable income and recovered through the tax system (PAYE or Self Assessment) in the next financial year.
When will I get it? Most payments will be automatic, appearing in bank accounts between now and mid-January. If you are of State Pension age, you do not need to apply manually. However, we advise checking your bank statement for the reference ‘DWP WFP’. If you have not received it by January 26th, you should contact the Winter Fuel Payment Centre.
