Winter Fuel - Means Test

t0rt0ise

MWT said:

Does anyone know how 'household' is determined?

Is it for example based on electoral roll or the address that HMRC have for an individual?

They pay it to couples just the same way they always have done via the pension details. Assessing for clawback will be done individually so one might lose theirs while the other keeps their half. 

MWT

Scot_39 said:

MWT said:

Does anyone know how 'household' is determined?

Is it for example based on electoral roll or the address that HMRC have for an individual?

Why would they be different ?

Both can and should be updated every move.  Via HMRC website or personal tax account login - and gov uk websites respectively - or post etc

My father-in-law is in a care home and does not want his tax/finance mail delivered there, but is on the electoral roll at that address.

I'll deal with the impact of his choices if it proves necessary, just curious if anyone knew the answer.

He will opt out as soon as that system is in place anyway. 

Brie

Not all adults are eligible to be on the electoral roll so I'd rule that bit out.  Based on tax info would likely be better but there's likely to be a percentage that get missed/included incorrectly.

spenderdave

I will say it again, it has nothing whatsoever to do with the electoral role, totally irrelevant. The winter fuel payment this year, as it was before it was stopped last year, will be paid to ALL state pensioners. If you have a state pension from DWP you will get it, the actual amount varying depending on whether you are a couple or single and if you are over 80.

It will be clawed back via the tax system if your taxable income is greater than £35k in the 2025-2026 tax year. That will be determined by self assessment or other means if you don't complete self assessment. How the tax system will actually take off the £150/£200 is not clear and there must be changes to the tax arrangements to take that exact amount off rather than just treating it as taxable income, where you would only pay the taxable element. But whatever, this also means that for most people they won't actually pay it back until 2027 when 2025-2026 tax is due.

brewerdave

Even tho' my total pensions will be slightly over the £35k limit ,I won't be opting out - I don't trust HMRC to not claw it back as well!!

debitcardmayhem

brewerdave said:

Even tho' my total pensions will be slightly over the £35k limit ,I won't be opting out - I don't trust HMRC to not claw it back as well!!

With the govt’s propensity for getting value for money(sic) from I.T. it will either not work, or cost more than needed, or both.

Of course Dave you could give it to charity and they will get the benefit of the tax 😎

Descrabled

Our combined WFP will be £200 split 50%/50% between both of us. We may have to adjust our savings next financial year so that at least one of us receives the net payment; too late for this financial year.

As already mentioned the repayment by HMRC will be claimed next year via PAYE. However, HMRC may assume this year's WFP will be the same as next year's WFP so any adjustments we make to our savings ratio may take 2 or 3 years to be recognised by HMRC.

What a complete mess this is going to be to resolve and how much extra work for HMRC.

Qyburn

Descrabled said:

Our combined WFP will be £200 split 50%/50% between both of us. We may have to adjust our savings next financial year so that at least one of us receives the net payment; too late for this financial year.

Is there a savings threshold?  Or are you speaking about savings interest pushing you over £35k each?

Brie

Probably a dump question but how does DWP know if 2 people are married?  Of even a couple?  What if there are 2 house mates both of whom are eligible?

Qyburn

Brie said:

Probably a dump question but how does DWP know if 2 people are married?  Of even a couple?  What if there are 2 house mates both of whom are eligible?

Do they even care, maybe it's just any two (or more I guess) pensioners living at the same address.

I can't really understand why it's per household anyway, it leads to irrational things like a couple with one person below State Pensiin age get to keep £200 no matter how much the younger partner earns. Whereas if they were both over SP age they'd only get £100.

Just my personal opinion but if me and Lady Q were each bringing in over £35k in retirement, I wouldn't dream of rejigging our finances just to claim a £100 hardship handout.