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Winter Fuel Payment

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The Winter Fuel Payment is a state benefit paid once per year in the United Kingdom to some people old enough to have been born before a specific date. It is intended to cover the additional costs of heating over the winter months.

History

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The payment was first introduced by the Labour government in 1997, and was first announced by Chancellor of the Exchequer Gordon Brown in his Pre-Budget Statement of that year.[1]

In July 2024, Chancellor Rachel Reeves announced that the benefit would only be given to those in receipt of Pension Credit or other means-tested benefits. This removed the benefit from around 10 million pensioners.[2] In response, over 500,000 people signed an Age UK petition calling on Reeves to reverse her decision.[3]

Eligibility

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Eligibility from 1997 until 2024 was based on age (over 65) and residence. From 2024 the benefit was restricted to those in receipt of Pension Credit or other means-tested benefit.[4]

To be eligible for the benefit in a particular year, a person must have been born before a specific qualifying date (e.g. 23 September 1958 for payments for the winter 2024–2025).[4] Certain categories of people are excluded groups (prisoners, people receiving long-term free hospital care, those with certain immigration issues, and those living in care homes and receiving income-related benefits such as pension credit).[4] The benefit may also be applicable to those living abroad with a genuine and sufficient link to the UK (having lived or worked in the UK, or having family in the UK).[4]

Amount

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The amount paid is greater for those aged 80 years and older and is set so that a person living alone (or with people ineligible for the payment) is paid twice as much as a person in a household where more than one person receives the payment.[5] In the winter 2024–2025 the amount paid was £200 to £300 depending on circumstances.[4] If the weather is particularly cold, a cold weather payment may also be made.[6]

Administration

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In Great Britain, the Social Fund Winter Fuel Payment Regulations 2000[7] govern the system, under the Social Security Contributions and Benefits Act 1992. In Northern Ireland the Social Fund Winter Fuel Payment Regulations (Northern Ireland) 2000 [8] govern the system.

In the winter of 2011–12, the benefit cost the UK Government £2,100,000,000 and was paid out to 12,700,000 people.[9] It was criticised by Paul Burstow (former care services minister) in 2013 for its lack of targeting, Burstow saying that "80% of older people do not require [the benefit]" and proposing that it be only given to pensioners on pension credit which he said would save £1.5 bn a year.[10] He suggested that the savings be used to help implement the findings of the Dilnot Commission into social care.[10] However, in 2013 about 1 million of 3 million eligible people did not claim pension credit.[9]

Scotland

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Winter Fuel Payment is not available to people living in Scotland, as the Scottish government plans to introduce a Pension Age Winter Heating Payment to replace it. "For winter 2024-2025, the Department for Work and Pensions (DWP) has committed to make payments this winter to eligible pensioners in Scotland on terms equivalent to Winter Fuel payments in England and Wales."[11][12]

References

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  1. ^ "Winter Fuel Payments update" (PDF). gov.uk. 2016. Retrieved 10 June 2016.
  2. ^ "Winter fuel payments scrapped for millions". BBC News. Retrieved 30 July 2024.
  3. ^ "New petition calls for Winter Fuel Payments to be made to every person over State Pension age". Daily Record. Retrieved 1 August 2024.
  4. ^ a b c d e "Winter Fuel Payment: Eligibility". gov.uk. 2024. Retrieved 4 September 2024.
  5. ^ "Winter Fuel Payment: What you'll get". gov.uk. 2013. Retrieved 18 November 2013.
  6. ^ "Winter Fuel Payment". GOV.UK. Retrieved 10 February 2021.
  7. ^ "The Social Fund Winter Fuel Payment Regulations 2000", legislation.gov.uk, The National Archives, 13 March 2000, SI 2000/729, retrieved 28 June 2020
  8. ^ Northern Ireland Assembly. The Social Fund Winter Fuel Payment Regulations (Northern Ireland) 2000 as amended (see also as made), from legislation.gov.uk.
  9. ^ a b David Brindle (3 January 2013). "Means test winter fuel cash for pensioners to fund care, says Lib Dem". The Guardian. Retrieved 3 July 2015.
  10. ^ a b "Let's end this old age care lottery | Paul Burstow". The Guardian. 3 January 2013. Retrieved 10 February 2021.
  11. ^ "Heating cost help". www.gov.scot. Retrieved 4 September 2024.
  12. ^ "UK Government decision ends universal fuel payments". www.gov.scot. Retrieved 4 September 2024.
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