What Winter Fuel Payment changes mean for you: Rachel Reeves cuts back pensioner benefit

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Millions of pensioners will no longer get Winter Fuel Payments worth up to £300 a year as chancellor Rachel Reeves unveils sweeping cutbacks.

Currently everyone above state pension age is eligible for the Winter Fuel Payment.

Reeves said the cutback was needed to plug holes in the public purse left by larger-than-expected deficits left by the Conservative government.

The move means that the number of people getting Winter Fuel Payment could drop by millions.

This is everything you need to know about what the Winter Fuel Payment changes mean for you.

Cuts for pensioners: Chancellor Rachel Reeves says the Conservatives left public finances 'in an even worse state' than she had feared, and warned of a tough Budget in October 2024

What is Winter Fuel Payment?

Winter Fuel Payment is a government benefit intended to help with heating bills.

It is worth from £100 to £300 a year. How much you get varies depending on factors such as when you were born and which benefits you claim.

Last winter the normal payments were topped up by an additional £300 government payment meant to help with the high cost of living. 

Who qualifies for Winter Fuel Payment?

Anyone above state pension age, which is currently defined as anyone born on or before 24 September 1957.

Around 11.4 million people got Winter Fuel Payment in the winter of 2023, a rise of around 157,000 on the year before, according to government figures.

What is changing with Winter Fuel Payment?

Reeves is cutting the number of pensioners eligible for the payments from this winter by over a million - unless more act to claim benefits they are already entitled to but do not get. 

The chancellor has said she wants to stop all pensioners getting Winter Fuel Payment, and will instead restrict it to those who get benefits such as Pension Credit.

She has yet to announce the full details of the benefits that qualify for the new Winter Fuel Payments.

Pension Credit tops up the state pension for low-income pensioners.

But it has to be claimed, and is not paid automatically. In practice, that means around 880,000 are not claiming Pension Credit - around six in 10 of those eligible.

The move was slammed by charity Age UK.

 Caroline Abrahams, charity director at Age UK, said: 'We strongly oppose the means-testing of Winter Fuel Payment because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.'

Alice Haine, personal finance analyst at Bestinvest, said: 'Chancellor Rachel Reeves’ shock decision to scrap winter fuel payments for all pensioners risks leaving some of the most vulnerable people without heating in the colder winter months.

'The withdrawal of this vital support will apply from this winter, meaning many who may have budgeted their finances carefully, expecting to receive the payment this year will now miss out.'

How to apply for Pension Credit

Find out more about pension credit here and about the rules on who is eligible here.

You can apply yourself by phone on 0800 99 1234, claim pension credit online or get a form to do it by post.

A friend or family member can apply on behalf of an elderly person.

Age UK staff will also help with applications. If you call its free helpline they will check you are getting all benefits you are entitled to, including pension credit.

Any older person struggling with bills, or friends and family who are concerned about them, can call 0800 169 65 65.

This line is open every day of the year between 8am and 7pm, or you can visit Age UK's help page here.

Age UK also has a free, anonymous benefits calculator which can provide an estimate of what you could be entitled to.