Winter fuel payments fell by 9.3 million before U-turn

To 1. The number of individuals who received winter fuel subsidies plunged to 1. According to new government reports, the government made 3 million following turbulent government layoffs. About 11 million people in England, Wales, and Scotland have been paid in previous years, which helps pensioners pay for winter energy bills. However, a Treasury decision to means-test the payment resulted in a much smaller number of recipients last year, according to the Department of Work and Pensions' latest official estimates (DWP). The scheme has now been postponed, with a U-turn by the chancellorin June indicating that the overwhelming majority of pensioners will receive the payment, which will be worth up to £300 per household, this coming winter.

Changing rules

During the year's coldest season, the winter fuel payment was previously paid to all pensioners to help with energy costs. However, in July 2024, the government said that future payments in England and Wales would go only to those on low incomes who received designated services, such as pension credit. Ministers in Scotland have attempted to offset some of the cuts. Due to the state of the public budget, Chancellor Rachel Reeves said the change was necessary. In the recently released reports, the policy's impact on various parts of the country is revealed. Many pensioners in areas with a larger number of low-income pensioners also received the winter fuel allowance, although others did not. Around 49% of pensioners in London's Tower Hamlets district received the payment. Whereas in Hart, Hampshire, and Wokingham, Berkshire, only 5% received it, relative to an England and Wales average of 13%.

U-turn pressure

Reeves announced partial reversal after widespread outrage and a backlash from some Labour MPs who blamed the programme for their party's poor showing in municipal elections in May. Pensioners with an annual income of £35,000 or less will be eligible for the benefit, and will be sent a letter in October or November. It means that more than three-quarters of pensioners will be aided this winter by the government. The Scottish government will implement this policy. For people of state pension age up to 79, thewinter fuel payment in England and Wales is worth £200. People aged 80 or older receive £300. The payment will be increased in Scotland this coming winter in line with inflation, which has shown increases in inflation, so it will be worth either £203. 40 or £305. 10 per household. If a household is on a set contract, electricity bills will increase by 2% in October, under energy regulator Ofgem's price cap. The most recent results came as pensioners were also warned of a possible rise in the state pension next April. According to a government spokesperson, nine million pensioners will be paid this winter, and ministers had also confirmed their commitment to the triple lock.

And because of our efforts to raise pension credit, over 57,000 additional pensioner households were given the benefit, worth on average £4,300 per year,

he said.