More pensioners will receive winter fuel payments

More pensioners will receive the winter fuel allowance this winter – but payments will not be universal, the Government has said.

Chancellor Rachel Reeves told reporters that “more people will get winter fuel payment this winter”, adding that further details will be announced “as soon as we possibly can”.

She said: “People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.”

Meanwhile, pensions minister Torsten Bell told MPs that, while more pensioners will be eligible, there is no prospect of returning to universal winter fuel payments.

Speaking to the Work and Pensions Committee, Mr Bell said: “Directly on your question of is there any prospect of a universal winter fuel payment, the answer is no, the principle I think most people, 95% of people, agree, that it’s not a good idea that we have a system paying a few hundreds of pounds to millionaires, and so we’re not going to be continuing with that.

“But we will be looking at making more pensioners eligible.”

Mr Bell said he did not have “lots to add” to what Prime Minister Sir Keir Starmer had said recently about the allowance.

He told the MPs: “Of course the announcement, as and when it’s made, will be made to the House.”

Sir Keir recently signalled a partial U-turn over the Government’s decision to strip winter fuel payments from millions of pensioners.

The Prime Minister said “as the economy improves”, he wanted to look at widening eligibility for the payments worth up to £300.

But officials have been unable to say how many more pensioners would be eligible.

The decision to means-test the previously universal payment was one of the first announcements by Chancellor Rachel Reeves after Labour’s landslide election victory last year, and it has been widely blamed for the party’s collapse in support.

The Government has insisted the policy was necessary to help stabilise the public finances, allowing the improvements in the economic picture which Sir Keir said could result in the partial reversal of the measure.

On July 29 2024, the Government announced that from winter 2024, winter fuel payments would be dependent on receiving another means-tested benefit, as part of measures to fill a “black hole” in the public finances.

This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million.

Pension credit is the primary benefit by which pensioners can receive the winter fuel payment.

The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.

Asked what groups who are currently missing out on winter fuel payments he would like to include again, if possible, Mr Bell told the committee: “We are committed to the principle that there should be some means-testing and that those on the highest incomes shouldn’t be receiving winter fuel payments in the context of wider decisions we have to make – and fairness is an important part of that.

“You can then take from that that my priority is those who are on lower incomes but have missed out.”

He told the MPs: “I’m not getting into anything about the operation of that but just, you know, I think all of us will have heard from people on lower incomes who didn’t receive winter fuel payment this year and I understand the points they’ve raised. And so we’d like to see wider eligibility.”

Published: 04/06/2025 by Radio NewsHub