In one of their first moves since coming to power in July 2024, the Labour government removed the Winter Fuel Payment for all but the poorest of pensioners who claim Pension Credit
However, Sir Keir Starmer recently announced plans to restore the Winter Fuel Payment to some pensioner households – a sentiment echoed by Chancellor Rachel Reeves in a speech today as she confirmed more pensioners would receive the payment by this winter
Pension Credit claims since the July 2024 announcement are up 51% compared to the same period from 2023-24 (Source: Pension Credit applications and awards: May 2025 – GOV.UK)
Bell confirmed the details of the new plans for paying the Winter Fuel Payment will be announced to the House of Commons, adding to speculation these could be included in the government’s Spending Review on 11 June 2025
Tom Selby, director of public policy at AJ Bell, comments: “After months of political pressure, the government finally accepted it needed to look again at the decision to limit the Winter Fuel Payment to Pension Credit recipients. But it now faces a dilemma in determining exactly who should be eligible. “It’s no surprise Torsten Bell has ruled out a complete U-turn to revert back to paying the Winter Fuel Payment to every pensioner, as that would cost this financially hampered government too much money and loss of face. Instead, it wants to push the boundaries of eligibility to include more pensioners.
“But that could be easier said than done. One option on the table is to award the payment to everyone receiving a state pension, clawing the money back from higher income households, potentially through their tax returns. This might look something like the process for clawing back child benefit for working households, although that has caused mass confusion among taxpayers bamboozled by the complexity of the rules. Wherever their head scratching takes them, British pensioners are on tenterhooks to see if they qualify for a warmer winter this year. We could get an announcement as soon as next week at the Spending Review, but the government will be hoping to put the issue to bed at the Autumn Budget, giving pensioners certainty ahead of the colder months and dampening some of the attacks the government has been on the end of since its announcement last summer.”
Claiming Pension Credit
For those on low incomes, who are over state pension age, claiming Pension Credit can offer a valuable additional income top-up. If you live alone and have a weekly income of less than £227.10 (just over £11,800 a year) then you’ll be eligible for Pension Credit. The same applies to a couple with an income of £346.60 per week, equivalent to just over £18,000 a year.
If you can demonstrate your income is below that threshold then Pension Credit effectively tops you up to that level. For someone living on their own with an income of £217 a week, Pension Credit will provide an additional £10 a week to supplement their income, taking it up to the Pension Credit threshold. Your income includes your state pension, other private pensions, employment or self-employment earnings and most social security benefits.
Pension Credit has historically been underclaimed, with many people not realising they may be entitled to the payments and failing to claim. Pension Credit won’t be paid automatically, so you have to submit a claim through the DWP, which can be done online or over the phone. If you’re unsure whether to claim because you’re close to the income threshold, there’s no harm in submitting a claim – the worse that can happen is you find you’re not eligible.
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