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Winter fuel update 9th June 2025

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Hi All,
Ive just been reading about the new rules for winter fuel payments and it's confusing.

As i have read it today, if a pensioner earns over £35,000 pa then they will not be entitled to WFP
If you earn less than £35,000 then you will be entitled to WFP
WFP of £200 is paid on the basis of a household having a qualifying pensioner in it.
My wife and I are both pensioners and when we were entitled to WFP previously the £200 was paid at £100 each, so a household rate of £200.

Now if I earn >£35,000 and my wife earns <£35,000 then I am not entitled to WFP  but my wife is.
So will she get the household allowance of £200 and I get nothing? So no reduction due to my earnings?
Or will she only get £100?
Its unclear to me.

«13

Comments

  • Alderbank
    Alderbank Posts: 3,939 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Interesting question!

    The latest I have heard is that all pensioner households will be paid WFP exactly as before (so your household will get £200) and subsequently HMRC will recover overpayments via the tax system.

    That sounds like the intention is that:
    1. HMRC will identify you as an over £35K earner and remove you from the eligible list
    2. HMRC will identify your wife as the sole eligible pensioner in your household so she will be allowed to keep £200
    The problem is that HMRC taxes us all as individuals and does not see us as 'households'. This has just now been raised on LBC without coming to a conclusion.
  • sheramber
    sheramber Posts: 22,636 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    As usual those who come up with the idea do not work the system so have no knowledge of how it works.
  • Pollycat
    Pollycat Posts: 35,801 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Savvy Shopper!
    Alderbank said:
    Interesting question!

    The latest I have heard is that all pensioner households will be paid WFP exactly as before (so your household will get £200) and subsequently HMRC will recover overpayments via the tax system.


    I heard on BBC news that people with income over £35K can opt out and not receive the WFP.

  • Freecall
    Freecall Posts: 1,337 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I think that the situation posed by Microbe99 is straightforward as discussed they will get £100.

    Simple when individuals are living together and being taxed as individuals.

    It is the situation with single people that is harder to understand.  How does HMRC know that someones lives alone?
  • sheramber
    sheramber Posts: 22,636 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Freecall said:
    I think that the situation posed by Microbe99 is straightforward as discussed they will get £100.

    Simple when individuals are living together and being taxed as individuals.

    It is the situation with single people that is harder to understand.  How does HMRC know that someones lives alone?
    How did they know for the previous system?

    Single eligible person household , under 80, got £200

    Two eligible people household, under 80, got  £100 each.

    My letter said,' as someone else in your household is due WFA you will recieve £100.
    My husband's payment was reduced from £200 the previous u=year , to £100 because I was now eligible for payment.

    I expect pension details are linked by addresses.
  • Silvertabby
    Silvertabby Posts: 10,161 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Microbe99 said:
    Hi All,
    Ive just been reading about the new rules for winter fuel payments and it's confusing.

    As i have read it today, if a pensioner earns over £35,000 pa then they will not be entitled to WFP
    If you earn less than £35,000 then you will be entitled to WFP
    WFP of £200 is paid on the basis of a household having a qualifying pensioner in it.
    My wife and I are both pensioners and when we were entitled to WFP previously the £200 was paid at £100 each, so a household rate of £200.

    Now if I earn >£35,000 and my wife earns <£35,000 then I am not entitled to WFP  but my wife is.
    So will she get the household allowance of £200 and I get nothing? So no reduction due to my earnings?
    Or will she only get £100?
    Its unclear to me.

    Exactly our situation.  They way I read it, we will each get £100 - but Mr S will have to pay his back by extra taxation (the whole £100, not 20% of it).

    Just waiting to see how Mr S can opt out of receiving it in the first place, rather than risk messing up his taxes. 
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,659 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Freecall said:
    I think that the situation posed by Microbe99 is straightforward as discussed they will get £100.

    Simple when individuals are living together and being taxed as individuals.

    It is the situation with single people that is harder to understand.  How does HMRC know that someones lives alone?
    They probably don't know.

    But you would have to think DWP will be telling HMRC who was paid what.  If they don't do that then people who have deliberately opted out would end up being taxed.
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