Winter fuel allowance for pensioners re-instated 🤗

rightfoot_shifter

Sorry to crash in on the conversation: Has anyone confirmed that the tax year for any winter fuel payment clawback will be tax year 2025-6, and not based on 2024-5?

Qyburn

Silvertabby said:

westv said:

Restricting it to those claiming pension credit was the easiest way to means test it.

The biggest problem with that are the 2 million pensioners (Age UK figures) who are literally just a few quid over the pension credit means test limit.  These are the people who really need the WFA.  And the other tasty benefits that being in receipt of pension credit opens the door to 

On the first point, whatever threshold is set there'll be people "literally just a few quid over" who'll feel hard done by. The other points are issues with Pension Credit itself irrespective of WFA.

Grumpy_chap

Nick_C said:

Not paying it to a single pensioner with £36k while paying some of it to a pensioner couple with £72k (40 + 32) is unfair.

BUT, exactly the same comments that have been made with regard to HICBIC for the past however many years and to no effect.

GibbsRule_No3. said:

I think what the £200 debate raises is how poor the State Pension is. If it was a decent amount Pension Credit would not need to be paid as much and then possibly all the added benefits that PC bring would also be lower, as not as many people would get it. 

AIUI, an individual in receipt of full SP would be above the threshold for PC.  If that is so, then increasing SP would not change the amount of expenditure on PC.

Silvertabby said:

The biggest problem with that are the 2 million pensioners (Age UK figures) who are literally just a few quid over the pension credit means test limit.  These are the people who really need the WFA.  And the other tasty benefits that being in receipt of pension credit opens the door to 

The extra door opening associated with PC is an anomaly in itself.  An individual slightly above the PC threshold can end up less well off than an individual slightly below the PC threshold once the gateway amounts are also considered.  

hugheskevi

GibbsRule_No3. said:

I think what the £200 debate raises is how poor the State Pension is. If it was a decent amount Pension Credit would not need to be paid as much and then possibly all the added benefits that PC bring would also be lower, as not as many people would get it. 

AIUI, an individual in receipt of full SP would be above the threshold for PC.  If that is so, then increasing SP would not change the amount of expenditure on PC.

The full rate of the new State Pension is above the standard threshold for Pension Credit. However:

• Only slightly over a third of pensioners are under the new State Pension system, most are under the pre-2016 system
• Not all pensioners receiving the new State Pension get the full rate
• Pension Credit has premia for disability and caring, those eligible for these premia receive a higher rate of Pension Credit

As at November 2024 there were 5,155,748 individuals in receipt of a State Pension of under £200 p/w (source: DWP statistics produced using Stat-Xplore). There were 7.9 million receiving £200+ p/w. 

Cobbler_tone

Grumpy_chap said:

Nick_C said:

Not paying it to a single pensioner with £36k while paying some of it to a pensioner couple with £72k (40 + 32) is unfair.

BUT, exactly the same comments that have been made with regard to HICBIC for the past however many years and to no effect.

Child benefit was the obvious comparison, albeit with diminishing returns. In my days of it (at the £50k level) I was the main earner and broke that threshold around 2014, she had no earnings at the time. In the end it was more hassle than it was worth and I opted out on (I think) the third year. I know by the time it was increased the kids had grown up. No-one seemed particularly interested in at the time, especially when you aren't the person claiming it, so assuming they had no issue tracking a household income. People tend to lack empathy if you have a half decent salary.
I wish I'd been more switched on with pensions back then. In retrospect, I probably could have juggled things a bit more and kept the same income whilst increasing my contributions.

Nick_C

Grumpy_chap said:The extra door opening associated with PC is an anomaly in itself.  An individual slightly above the PC threshold can end up less well off than an individual slightly below the PC threshold once the gateway amounts are also considered.  

The problem of people who are just above the threshold for Pension Credit could be resolved quite easily.

1)  Claimant is £2 a week above the Pension Credit threshold - £104 a year.  Pay an assessed annual Pension Credit of £96 or £196 when WFP are sent out.  That award would be a passport to any other associated benefits.

OR

2)  Claimant is £5 a week above the Pension Credit threshold - £260 a year.  Provide the claimant with an option to buy a Pension Credit award on payment of £260 a year.  They would, in return, receive the WFP and any other associated benefits. 

It's a relatively small number of people, and it would not be adding much complexity to the existing means testing process, but it would solve the "better off" problem once and for all. 

SnowMan

SnowMan said:

This seems to be all we have in terms of the detail (click on the winter fuel payment for 2025 to 2026 link also on that page)

https://www.gov.uk/winter-fuel-payment

It says there 

Details of the 2025 to 2026 payment will be available by the end of June 2025.

So perhaps we will have to wait until the end of the month for the detail (?)

Today is the last day of June and we don't seem to have any more detail than the press release of 9th June yet. 

SnowMan

SnowMan said:

SnowMan said:

This seems to be all we have in terms of the detail (click on the winter fuel payment for 2025 to 2026 link also on that page)

https://www.gov.uk/winter-fuel-payment

It says there 

Details of the 2025 to 2026 payment will be available by the end of June 2025.

So perhaps we will have to wait until the end of the month for the detail (?)

Today is the last day of June and we don't seem to have any more detail than the press release of 9th June yet. 

They've now updated the page this morning

https://www.gov.uk/winter-fuel-payment

The payment split for couples (for those not receiving income related benefits) is as expected 300/0, 150/150, 200/100, 100/100 depending on whether one or both in the couple qualify, and depending on if either or both is 80+. And they say

If you’re eligible, you’ll get a letter in October or November saying how much you’ll get. Most eligible people will be paid in November or December 2025.

No further detail on precisely how the 35K take back will work.

If your income is more than £35,000
HMRC will take back all of your Winter Fuel Payment through either PAYE or your Self Assessment tax return.

Eligibility if meet the age criteria and living in a care home clarified on the page (can receive unless the care home resident is both on pension credit or another means-tested benefit and lived in the care home for the whole time from 23 June 2025 or earlier)

Albermarle

SnowMan said:

SnowMan said:

SnowMan said:

This seems to be all we have in terms of the detail (click on the winter fuel payment for 2025 to 2026 link also on that page)

https://www.gov.uk/winter-fuel-payment

It says there 

Details of the 2025 to 2026 payment will be available by the end of June 2025.

So perhaps we will have to wait until the end of the month for the detail (?)

Today is the last day of June and we don't seem to have any more detail than the press release of 9th June yet. 

They've now updated the page this morning

https://www.gov.uk/winter-fuel-payment

The payment split for couples (for those not receiving income related benefits) is as expected 300/0, 150/150, 200/100, 100/100 depending on whether one or both in the couple qualify, and depending on if either or both is 80+. And they say

If you’re eligible, you’ll get a letter in October or November saying how much you’ll get. Most eligible people will be paid in November or December 2025.

No further detail on precisely how the 35K take back will work.

If your income is more than £35,000
HMRC will take back all of your Winter Fuel Payment through either PAYE or your Self Assessment tax return.

Eligibility if meet the age criteria and living in a care home clarified on the page (can receive unless the care home resident is both on pension credit or another means-tested benefit and lived in the care home for the whole time from 23 June 2025 or earlier)

Originally it was said it would be possible just to opt out of getting it. Not sure if there was any more info on that.

SnowMan

Albermarle said:

SnowMan said:

SnowMan said:

SnowMan said:

This seems to be all we have in terms of the detail (click on the winter fuel payment for 2025 to 2026 link also on that page)

https://www.gov.uk/winter-fuel-payment

It says there 

Details of the 2025 to 2026 payment will be available by the end of June 2025.

So perhaps we will have to wait until the end of the month for the detail (?)

Today is the last day of June and we don't seem to have any more detail than the press release of 9th June yet. 

They've now updated the page this morning

https://www.gov.uk/winter-fuel-payment

The payment split for couples (for those not receiving income related benefits) is as expected 300/0, 150/150, 200/100, 100/100 depending on whether one or both in the couple qualify, and depending on if either or both is 80+. And they say

If you’re eligible, you’ll get a letter in October or November saying how much you’ll get. Most eligible people will be paid in November or December 2025.

No further detail on precisely how the 35K take back will work.

If your income is more than £35,000
HMRC will take back all of your Winter Fuel Payment through either PAYE or your Self Assessment tax return.

Eligibility if meet the age criteria and living in a care home clarified on the page (can receive unless the care home resident is both on pension credit or another means-tested benefit and lived in the care home for the whole time from 23 June 2025 or earlier)

Originally it was said it would be possible just to opt out of getting it. Not sure if there was any more info on that.

Yes you can opt-out of receiving it. It tells you how to do that here (for example using the opt-out form or calling the helpline)

https://www.gov.uk/winter-fuel-payment/report-change-circumstances