How the new rules on Winter Fuel Payment affect you

One of the changes recently announced by the new Labour government is the removal of Winter Fuel Payment from many pensioners. But will this affect you?

In this article we look at:

• What is the Winter Fuel Payment?
• Who is still eligible for the Winter Fuel Payment?
• How to claim Winter Fuel Payment
• Is there any other help available with energy bills this winter?

What is the Winter Fuel Payment?

The Winter Fuel Payment is an annual tax-free payment of between £100 and £300 to help with heating costs during the colder months. Until recently, it has been available to all those of state pension age.

However, in July 2024 the government announced that, from this year onwards, to be eligible for the Winter Fuel Payment you must not only have reached State Pension age but also receive a qualifying means-tested benefit.

The result of this is that around 10 million UK pensioners will no longer receive the Winter Fuel Payment.

Who is still eligible for the Winter Fuel Payment?

To receive the Winter Fuel Payment for Winter 2024 to 2025 in England or Wales, you need to be of State Pension age and receive one of the following benefits:

• Pension Credit;
• Universal Credit;
• income-related Employment and Support Allowance (ESA);
• income-based Jobseeker’s Allowance (JSA);
• Income Support.

If you live in Scotland you may be eligible for the Winter Heating Payment.

If you receive State Pension, it is worth checking whether you may be eligible for Pension Credit. According to the Department for Work and Pensions, around 850,000 households in the UK who are eligible to receive pension credit do not claim it. You could be eligible if you are above state pension age and have an income of less than £218.15 a week, or less than £332.95 as a joint weekly income with your partner. 

How to claim the Winter Fuel Payment

If you are eligible for the Winter Fuel Payment, you should get a letter in October or November confirming your eligibility and explaining how much Winter Fuel Payment you will receive. 

If you receive one of the following benefits, you should receive the Winter Fuel Payment automatically. It will be paid into the same account as your benefits:

• Pension Credit
• Income Support
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)

If you receive Universal Credit you may need to apply separately for the Winter Fuel Payment. You will be told how to do this via a message in your journal.

If you do not get a letter about the Winter Fuel Payment but think you are eligible, you can apply for Winter Fuel Payment either by posting a Winter Fuel Payment claim form (available from Gov UK), phoning the Winter Fuel Payment on 0800 731 0160, or completing a Winter Fuel Payment email enquiry form.

The amount of Winter Fuel Payment you receive is based on when you were born and your financial circumstances between 16 and 22 September 2024 – known as the ‘qualifying week’.

Is there any other help available with energy bills this winter?

If you no longer qualify for the Winter Fuel Payment, there are other sources of help with energy bills available. Three of these are:

• The Warm Home Discount scheme

Many energy companies participate in the Warm Home Discount Scheme. You can see a full list of these suppliers on the Gov UK website here.

You will be eligible for the Warm Home Discount Scheme if you are a customer of one of these companies and receive one of the following benefits:

• Guarantee Credit element of Pension Credit
• Universal Credit
• Housing benefit

The Warm Home Discount Scheme entitles you to a one-off £150 discount off your electricity bill between October and March.

• Cold Weather Payment

The Cold Weather Payment is a £25 payment for each week of very cold weather between November and March.

You may receive Cold Weather Payments if you’re getting:

• Pension Credit
• Income Support
• income-based Jobseeker’s Allowance (JSA)
• income-related Employment and Support Allowance (ESA)
• Universal Credit
• Support for Mortgage Interest

• Fuel Direct Scheme

The government’s Fuel Direct Scheme is available to help people to repay an energy debt directly from their benefit payments. So if you have built up a bit of a backlog of payments, this could be an option worth considering.

Also be aware that if you are struggling with your energy bills, your supplier is required to offer you some kind of affordable payment plan or repayment holiday. So do get in touch with them if you are in this position.

We hope that this article gives you helpful information about the new rules on the Winter Fuel Payment. If you are ever in urgent need of extra finances to help with heating your home, and are considering a personal loan, remember that Loans 2 Go offer emergency loans that may be able to help.

For more useful financial and lifestyle tips, visit us here again soon at Loans 2 Go.