What will the Government’s winter fuel U-turn mean for you?

The Government has made a surprise U-turn on winter fuel support — and it could mean more help for your heating bills this year.

Today (9th June 2025) Chancellor Rachel Reeves has confirmed a major update to the Winter Fuel Payment, with expanded eligibility that could make a big difference to millions of older people this winter. From this year, anyone living in England or Wales who is over the state pension age and has an annual income of £35,000 or less will now qualify for the payment. This marks a significant shift from last year, when eligibility was limited to those receiving Pension Credit or other means-tested benefits — a move that left many pensioners excluded.
The government estimates that around nine million people will now receive the support, which represents more than three-quarters of pensioners in England and Wales. Payments will remain in line with previous years: households with a pensioner under the age of 80 will receive £200, while those with someone aged 80 or over will receive £300. The money will be paid automatically, so there’s no need to apply.
This expanded support is a direct response to criticism over last year’s cuts, and is part of a broader effort to ease the pressure of rising energy bills during the colder months. While this announcement applies to England and Wales, both Scotland and Northern Ireland have introduced their own policies in response to the ongoing cost-of-living crisis, with further details expected soon.

Check the Government's website to see what Winter Fuel Payments you're eligible for.

Last year's Winter Fuel announcement

On 29th July, the Chancellor announced that Winter Fuel Payments would no longer be universal for all pensioners; instead, only those receiving certain benefits would continue to receive the payment. Then, on Tuesday 10th September 2024, the Government voted to formally remove universal access to the scheme. Previously, when the payment was available to all, around 11.4 million pensioners benefited. Under the revised policy, only around 1.5 million pensioners remained eligible.

Reflecting on the decision to scale back the support, Chancellor Rachel Reeves described it as a "difficult" choice she had not wanted to make.

"This level of overspend was not sustainable. Left unchecked, it posed a risk to economic stability — and unlike the party opposite, I was not prepared to take risks with our country's financial future."

If you were wondering how these changes might have affected you, here’s a breakdown of the key details.

How much was the Winter Fuel Payment?

There was no fixed amount, as payments varied depending on age and personal circumstances. Under the revised scheme, eligible pensioners received either £200, or £300 if they were over the age of 80.

According to the official Government guidance at the time, "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’."

Eligibility for winter fuel payments

The Government’s plans to scrap Winter Fuel Payments for all but the poorest pensioners went ahead after 348 MPs backed the proposal, while 228 voted against it, failing to block the motion.

The payment became means-tested, with only those in receipt of Pension Credit eligible to receive it — a move that, according to Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, the online investment platform, “could have left some of the most vulnerable members of society forced to choose between eating and heating.”

Winter Fuel Payments were subsequently limited to people in England and Wales who were over the state pension age and receiving Pension Credit or a small number of other qualifying benefits, such as:

Age UK petition

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

They launched a petition in an effort to preserve Winter Fuel Payments for pensioners, aiming to gather 250,000 signatures. Further information and the option to sign the petition were made available under the campaign: 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.