If you lost out on the Winter Fuel Payment last winter you could be set to get it back this year.
After months of speculation, the Government has announced it is reinstating the payments for millions of pensioners after last year’s controversial cuts.
The payments were previously handed out to everyone over state pension age, until new restrictions were brought in which limited it to only those eligible for pension credit (or certain other means-tested benefits.
The changes sparked mass controversy, with concerns raised that millions of people on lower incomes who relied on it to help heat their homes over the colder months would no longer qualify – with the earnings limit to claim pension credit, and therefore the winter fuel payment, being below £12,000 for most people.
On top of this, we know that hundreds of thousands of people who would get pension credit are missing out because they haven’t claimed it.
Now, the Government has re-thought its heavy-handed approach and changed the eligibility criteria again.
This winter, anyone over state pension age with an income of less than £35,000 will get the payment.
The amounts will remain the same as in previous years, at £200 per household or £300 for households where at least one person is over 80.
Payments will be issued automatically to all pensioners, and will then be clawed back from those who earn too much through the tax system. You can however opt out if you know you’ll have to pay it back and would prefer not to get it in the first place – more information on how to do this will come later in the year.
Eligibility for the payments will be assessed separately for couples. So pensioners who live with a spouse or partner will be eligible if they earn under the £35,000 cut-off, even if their partner earns above it and has to pay back their portion.
Income that counts towards the £35,000 limit will include earnings from employment or self-employment, investments, the state pension and any private pensions. Non-taxable benefits, including Pension Credit, are not counted.
Overall, this is a positive move and a much fairer approach to last year’s rushed cuts which took the payment away from too many people who relied on it.
If you’re worried about energy costs, you can get in touch with organisations like Citizens Advice and National Energy Action for support.
Homes Plus customers can also speak to our dedicated team, for confidential money advice. Please be aware that there is currently a waiting list for this support.