The government has announced that everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this winter.
Eligibility has been extended to over three quarters of pensioners. This threshold is above the income level of pensioners in poverty and is broadly in line with average earnings. This change will cost around £1.25 billion in England and Wales. Means testing will save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of universal Winter Fuel Payments.
The payments will be made automatically, so pensioners do not need to take any action.
The payment will be £200 per household, or £300 per household where there is someone over 80.
Chancellor of the Exchequer Rachel Reeves said: "Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
"But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter."
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