In the latest U-turn after the months of backlash, the government has announced a large-scale expansion of who will receive the winter fuel payment.
After weeks speculation about what changes will be seen, it is now confirmed that 9 million pension will be eligible for payment – a major uplift from 1.5 million pensioners receiving payment in 2024-25 in winter.
Here, Independent See how the new system will work and who will be affected by upliftment.
How many people affected the cut in winter fuel payment?
Winter fuel payment is a state benefit to all pensioners to help with energy cost during the coldest months of the year.
Earlier universal payment means the decision to be tested was one of the first announcements. Rahel reeves When she became a chancellor after Labor’s landslide victory last year, and was widely convicted for the party’s collapse in support.
The government has stressed that policy was necessary to help help in stabilizing public finance, and it meant that the payment would go only to those with low income, who had received specified benefits such as pension credits.
This meant that the number of pensioners receiving the payment was reduced from 11.4 million to 1.5 million.
Many charitables, MPs and unions criticized the verdict, some convict it for the party’s disappointing local election results.
In November, it was discovered that the government’s own figures indicated that it would happen Force 100,000 pensioners in poverty in 2026.
How was the payment related to pension credit?
Only those who claim pension credit were able to receive winter fuel payments in 2024 of winter.
Those who are above state pension age and have less than £ 218.15 a week, or less than £ 332.95 as a weekly income combined with your partner, are eligible for pension credits.
However, despite an increase in claims after the government’s campaigns and the July 2024 announcement, it is estimated that half a million eligible people fail to claim profit.
How will the new system work?
The government has increased the threshold on which people of the age of state pension become eligible for payment, which means that anyone with less than £ 35,000 will be received in this winter.
The government estimates that the new limit will ensure that more than three -fourth of pensioners in England and Wales – about 9 meters of people – will get benefits.
It is estimated that about 2 million pensioners in England and Wales have taxable income above £ 35,000 and hence they will be exempted.
Payment of £ 200 per domestic, or £ 300 per house where there is no person of more than 80, will be made automatically in this winter, which means no pensioner will need to take any action to receive payment.
People with a threshed -in -law will look automatically recovered payment through HMRC, or have the option to exit them. However, the details of how it will work cannot be confirmed yet.
The ministers estimate that the change would cost the taxpayer £ 1.25BN in England and Wales, when the winter fuel payment was universally available, it would save £ 450m in comparison.
The Treasury has not yet determined how it will pay for uplift, but insisted that the cost will be included in the autumn budget and in the next OBR forecast. He has also promised that it will not borrow a permanent additional.
