Who Will Miss Out on the Winter Fuel Payment This Year?

Who Will Miss Out on the Winter Fuel Payment This Year

Who Will Miss Out on the Winter Fuel Payment This Year?

The Government has confirmed some major changes to the Winter Fuel Payment scheme, and it’s something that’s going to affect millions of pensioners across England and Wales. Normally, this payment is sent out each year to help older people with their heating bills during the coldest months, and it can make a real difference when energy costs are high. For most pensioners, that extra support of either £200 or £300 will still be coming through this winter. But the Department for Work and Pensions, or DWP, has also made it clear that not everyone will qualify.

Here’s the key point: while about nine million pensioners are set to receive the money, five groups of people will miss out. First, if you live outside of England and Wales, you won’t be included. Second, anyone who was in hospital receiving free treatment during the qualifying week in September won’t get the payment. Third, if you need permission to enter the UK and your visa says you can’t claim public funds, you’ll be excluded. Fourth, if you were in prison that same qualifying week, the payment will not be given. And finally, if your annual income is above £35,000, the support won’t stay in your pocket—because HMRC will take it back through your tax code or self-assessment return.

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There’s another detail for people living in care homes. You can still get the payment, but if you’ve been in a care home for a full year and you also receive certain benefits—like Pension Credit, Universal Credit, or income-related Jobseeker’s Allowance—you won’t qualify. It’s a bit of a complicated rule, but it shows that the system isn’t completely straightforward.

Now, the reason all of this is making headlines is because the Government originally cut back the scheme last year, and the number of people receiving the payment dropped dramatically—from nearly 11 million down to just 1.3 million. That caused a huge backlash. In June, a U-turn was announced, which restored the payment for the majority of pensioners, but with means testing in place. So this year, the cut-off has been set at £35,000 income. If you earn below that, you’ll keep the money. If you earn above it, HMRC claws it back.

Another wrinkle is how much you actually receive depends on your living situation. For couples, the amount can be split in half. So if two pensioners live together, the full payment isn’t given to both—it’s divided. And for those aged 80 or over, the higher £300 payment is reduced if you share a home with another qualifying pensioner.

In short, most pensioners will still see that Winter Fuel Payment arrive automatically—there’s no need to apply if you already get things like the State Pension or Pension Credit. But the rules are tighter than they used to be, and some people are going to be disappointed when they find they don’t qualify this time around. It’s all part of the Government’s attempt to balance support with financial pressures, but for those left out, especially in the colder months, it may feel like a tough blow.

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