What does the change to winter fuel payments mean?

On the 29th of July, the Chancellor announced that Winter Fuel Payments will no longer be universal to all pensioners; now, only pensioners who are on benefits will receive it. Now (on Tuesday, 10th September 2024), the Government voted to eliminate it. Previously, when the payment was universal, 11.4 million pensioners now, only around 1.5 million pensioners are eligible.

Speaking of the decision to scrap winter fuel payments for some people, Chancellor Rachel Reeves said that it was a "difficult" one she did not want to make.

"This level of overspend is not sustainable. Left unchecked, it is a risk to economic stability and, unlike the party opposite, I will never take risks with our country's economic stability."

If you're wondering how it may affect you; here's everything you need to know.

How much is the winter fuel payment?

There is no set amount for the winter fuel payment, as it differs from person to person. The new plans say that those eligible will receive £200, or £300 if they are over 80 years old.

According to the official Government website, "The amount you get is based on when you were born and your circumstances between 18 to 24 September 2023. This is called the ‘qualifying week’".

You can check if you need to make a claim on the GOV.UK website.

Eligibility for winter fuel payments

“The Government’s plans to scrap winter fuel payments for all by the poorest pensioners will go ahead after 348 MPs backed the proposal, with the 228 MPs voting against it failing to block the motion.

“The payment will now be means tested, with only those in receipt of pension credit eligible to receive it, something that could leave some of the most vulnerable members of society forced to choose between eating and heating this winter.", says Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, the online investment platform.

Winter fuel payments are now limited to people in England and Wales who are over the state pension age and are receiving pension credit or a limited number of other benefits, such as:

“This will better target support for heating costs at those who need it, while all pensioners will benefit from the government’s commitment to maintain the triple lock for the basic and new state pension in this parliament,” says a Treasury document which outlines the chancellor’s plans.

Age UK petition

In a post on their social platforms, the charity AGE UK have said: "Cutting the Winter Fuel Payment is the wrong policy decision and will leave millions of older people struggling this winter."

They have started a petition in the hopes of keeping the winter fuel payments for pensioners and need 250,000 signatures. You can find out more information or sign it here: Save The Winter Fuel Payment.

Other ways to save money on your heating

“Energy bills will increase from October 1 when the Energy Price Cap (EPC) rises by 10% to £1,717 per year, with expectations it will remain high for the rest of the winter. This makes the loss of the winter fuel payment even harder to take.", says Alice Haine.

 So, whether you're there are some ways to save money on your heating this winter:

• Turn down your thermostat
• Opt for an electric blanket
• Wash your clothes on a cooler setting

Meet the expert

Alice Haine is a Personal Finance Analyst at Bestinvest by Evelyn Partners, the online investment platform.

Arabella Horspool is a Commercial Content Writer for Yours at Bauer Media. She's a bookworm who is passionate about TV, film and theatre. She enjoys cooking, scrapbooking, playing board games and spending time with her pet dogs, tortoise and chickens.