Published On: Tue, Jun 17th, 2025
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DWP minister statement as he is pushed over extra Winter Fuel Payments | Personal Finance | Finance


A Government minister has issued a statement after being pressed to provide extra payments through the Winter Fuel Payment for some people.

The Government recently announced changes to the eligibility rules for the payment, which was worth £200 or £300 last year, so that everyone of state pension age will get the payment this winter. However, if you have income above £35,000, you will have to pay it back.

The payment has historically gone out to most people of state pension age but Labour tightened the eligibility last winter, adding the rule that you also had to be a means-tested benefit, such as Pension Credit.

As millions of pensioners missed out on the cash last year, Conservative MP Andrew Snowden asked the Government if it would consider “making an additional payment” for those who missed out on last winter’s payment but who will now be eligible.

Government figures showed some 1.5 million people qualified for the payment last winter, while some 9 million people will qualify under the new rules.

So some 7.5 million people could benefit potentially from such a payment. Pensions minister Torsten Bell provided a response – although some will say it left a lot of things unsaid.

He said: “From this winter, individuals with an income of £35,000 or below, will benefit from a Winter Fuel Payment. Winter Fuel Payments are £200 for a household with someone of state pension age and £300 for a household with someone aged 80 or over.

“They will be paid automatically to anyone who has not opted out. Individuals with a taxable income above £35,000 a year will see any Winter Fuel Payment recouped via HMRC.”

He added this would mean “the majority” of pensioners in England and Wales would get the cash under the new rules. However, he did not address the idea of extra payments for those who missed out last year.

Although the qualifying rules for the Winter Fuel Payment have expanded, some people may find they have to repay the cash even though their income is seemingly below the £35,000 limit.

Jeremy Cox, head of Strategy at Coventry Building Society, warned: “Thousands could still unknowingly be left out in the cold – not because they’re earning more, but because their savings are.

“Many pensioners may not realise that interest earned on savings held outside of ISAs counts towards their total taxable income.

“With interest rates still relatively high, even modest savings can generate income that pushes someone over the threshold.”

For example, a person with £20,000 in a savings account earning 4.5.% would earn £900 a year in interest, and this would count towards the threshold.

This is because this counts as part of your taxable income, even if the interest you earn is within your savings allowance and so you do not pay any tax on it.



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