Chancellor Reeves has reversed the Winter Fuel Payment cuts. Around 9 million pensioners will receive up to £300 towards energy bills in 2025.
WHAT WAS THE ORIGINAL WINTER FUEL PAYMENT PLAN?
Last July, the government announced plans to restrict winter fuel payments to only those receiving Pension Credit. Before this change, households with a pensioner between 67 to 79 received £200 per year, and those with a pensioner over 80 received £300 per year.
The cut excluded around 10 million pensioners, many of whom live on modest incomes but do not qualify for means-tested benefits.
The aim was to save up to £1.5 billion from the Treasury — but the proposal triggered widespread criticism from pensioners, charities, and MPs.
WINTER FUEL PAYMENT U-TURN 2025: WHAT’S CHANGED?
The government has now reversed the cut, ensuring that the majority of pensioners will once again receive the support they were previously entitled to.
• 75% (around 9 million) pensioners across England and Wales will once again receive the Winter Fuel Payment.
• When the original means test was introduced in July 2024, recipients dropped from 11.4 million to just 1.5 million.
• Under the new plan, payments will go to pensioners with an annual income under £35,000.
• Those earning above this threshold will still receive the payment upfront, but will repay it through the tax system.
• The updated policy will cost the government £1.25 billion, while still saving around £450 million compared to the original universal scheme.
This Winter Fuel Payment U-turn marks one of the first major announcements under Chancellor Rachel Reeves — and signals a significant shift in the government's tone.
WHY HAS THE POLICY BEEN REVERSED?
The original decision to cut winter fuel payments was deeply unpopular. Many argued it would unfairly penalise older people who narrowly miss out on Pension Credit, but who still struggle with rising energy bills.
Rachel Reeves confirmed that the revised scheme will be funded within the existing budget, with further details expected in the Autumn Budget 2025.
ARE YOU ELIGIBLE FOR WINTER FUEL PAYMENT IN 2025?
If you’re over State Pension age, and your income is under £35,000, you can expect to receive the Winter Fuel Payment this year — no need to apply.
If your income is higher, you may still receive the payment, but it will need to be reclaimed via PAYE or self-assessment.
Eligibility summary:
• Over State Pension age
• Live in the UK during the qualifying week. For winter 2025/26, the qualifying week will be 15th to 21st September 2025.
• Annual income under £35,000 (for automatic entitlement without repayment)
• Winter Fuel Payment is paid per household
HMRC is expected to contact pensioners directly with full details before payments begin. The payments will be made automatically to all pensioners, including those that earn over the £35,000 threshold. Payment will be recovered by the HMRC via PAYE or in the Self-Assessment tax return for those that earn over the threshold, meaning that there will not be any additional tax paperwork for pensioners.
Additionally, if you do earn over the £35,000 threshold you will be able to opt out of the Winter Fuel Payment, eliminating the need to pay this back through the tax system. Further information will be available on GOV.UK in due course.
These changes are likely to lead in an increase in fraudsters pretending to be HMRC to steal individuals’ personal details. Treat any unsolicited messages or calls with extreme caution.
WHAT SHOULD YOU DO NEXT?
If you’d like help understanding how this change affects you or your family, please don’t hesitate to get in touch.
