You won't get DWP £300 winter fuel payment if this rule applies to you
The winter fuel payment will be made automatically this winter. Here's everything you need to know about the changes and who will qualify for the payment and who won't and how that works
In a significant policy reversal, millions of individuals will receive a winter fuel payment this year. It was confirmed on Monday, June 9, that pensioners earning £35,000 or less would receive a payment of up to £300 later this year.
The announcement partially rolled back a contentious policy implemented last year that introduced means-testing for the winter fuel payment. This change drastically reduced the number of pensioners receiving the aid from 11.4 million to approximately 1.5 million.
The payment, typically dispatched in November or December to assist with fuel expenses during the colder months, had previously been automatic.
The changes announced this week have been attributed to the Labour Party's reduced public support following its general election triumph. For money-saving tips, sign up to our Money newsletter here
Earlier this year, the government partially reversed its stance, confirming that more people would be eligible for the payment, but did not provide additional details until now. Under the revised rules, around nine million individuals will qualify for the payment at a cost of £1.25bn.
This expenditure is anticipated to be offset by reclaiming the payment from higher-income pensioners through HMRC, reports Wales Online.
Who does and doesn't benefit under the new rules?
The changes will enable all pensioners in England and Wales with an annual income of £35,000 or less to receive a winter fuel payment. But if you earn more than this - you will still receive the payment but it will be clawed back by the Government by another method.
You can find out more about what the rules mean for couples here.
This change extends eligibility to the vast majority of pensioners, with around nine million or over three-quarters set to benefit, according to ministers' statements on Monday, June 9.
What do you need to do?
There's no need for any action on your part; if you're eligible, the payment will be automatically made to you this winter. For those with incomes above the threshold, you will still get the payment but it will be automatically reclaimed by HMRC without any required intervention.
The automatic payment this winter will be £200 per household, or £300 for households with someone aged over 80. Additionally, over 12 million pensioners throughout the UK will gain from the Triple Lock, which promises a State Pension increase of up to £1,900 during this parliament.
Chancellor of the Exchequer, Rachel Reeves, said earlier this week: "Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
"But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter."
Those pensioners who prefer to opt out and decline the payment entirely will be accommodated, with further details forthcoming.