From autumn 2024, the annual payments will no longer be paid to those not on pension credit and other means-tested benefits.
The new Labour Government said this would save £1.4 billion this year.
The contentious decision comes amid the 10 per cent rise in the energy price cap this winter. The charity Age UK and Money Saving Expert founder Martin Lewis are among those criticising it.
Mr Lewis said: “Yet again, those just above the thresholds will be hardest hit. Many pensioners eke out the £100 to £300 winter fuel payments to allow them to keep some heating on through the cold months.
“While there’s an argument for ending its universality due to tight national finances, it’s being squeezed to too narrow a group — just those on benefits and pension credit. Yet again, those just above the thresholds will be hardest hit.”
Here is everything we know:
What is the Winter Fuel Payment?
A one-off fuel payment has been made to pensioners each winter since 1997 to help them cover the cost of heating their homes.
The payments were previously a universal benefit for all pensioners, and everyone received it, no matter what their income was. £200 was paid to those aged between 66 and 79 and £300 for those over 80.
But from this year, it has been announced it will be means tested from now on.
Who is eligible for Winter Fuel Payment?
Individuals born before 25 September 1957 could receive tax-free payments from anywhere between £250 to £600, which includes a £150 to £300 ‘Pensioner Cost of Living Payment.’
Most UK residents born before this period will be eligible for payouts.
From this autumn, only pensioners receiving other benefits such as Universal Credit or Pension Credit will qualify for the winter fuel payment.
Many have argued that pensioners only receive Pension Credit if their annual income is under £11,336, which is not a lot of money.
Age UK say they will fight the decision, and say they expect the new rules to affect two million pensioners who ‘badly need the money to stay warm this winter’.
They have launched a petition.
When will eligible people receive their Winter Fuel Payment?
The winter fuel payment will be made this year between November and December.
People should receive a letter notifying them of how much they can expect at some point this November if they haven’t already through October. They can also expect information telling them which account money will be transferred to.
Following the period of receiving letters, those eligible will be (if they haven’t already) paid as usual during November or December. A Winter Fuel Payment does not count as income when working out entitlement to other benefits.
Money received is not solely dependent on age, but also on what one’s circumstances were like from 18 to 24 September – this is known as the ‘qualifying week’.
For those who live alone and without any recipients of the winter fuel payment in their homes, they may also receive up to £500. This is dependent on them being born between 25 September 1943 and 24 September 1957. Alternatively, anyone born born before 25 September 1943 may get £600. Those eligible and in care homes may receive £250 or £300.
How to apply if you think you should be eligible?
The best way is to apply for Pension Credit as the fuel payment will be paid automatically to those receiving this.
You can apply online using the government’s website here or there is also the option to post a printed form.
