What the winter fuel payment changes mean for you: Rachel Reeves cuts retiree benefit

Millions of pensioners will no longer receive winter fuel payments worth up to £300 a year as Chancellor Rachel Reeves unveils radical cuts.

Currently, everyone over state pension age is entitled to the Winter Fuel Payment.

Reeves said the cuts were necessary to plug holes in the public purse left by larger-than-expected deficits left by the Conservative government.

The move means the number of people receiving the Winter Fuel Payment could fall by millions.

Here’s all you need to know about what the Winter Fuel Payment changes mean for you.

What is the Winter Fuel Payment?

The Winter Fuel Payment is a government benefit intended to help with heating bills.

It ranges in value from £100 to £300 a year. The amount you receive varies depending on factors such as when you were born and what benefits you claim.

Last winter, an additional £300 government payment was added to the normal payments to help with the high cost of living.

Who qualifies for the Winter Fuel Payment?

Anyone over state pension age, which is currently defined as anyone born on or before 24 September 1957.

Around 11.4 million people received the Winter Fuel Payment in winter 2023, an increase of around 157,000 on the previous year, according to government figures.

What is changing with the Winter Fuel Payment?

Reeves is cutting by more than a million the number of retirees eligible for payments starting this winter unless more people act to claim benefits they are already entitled to but not receiving.

The chancellor has said she wants to stop all pensioners receiving the Winter Fuel Payment and instead restrict it to those receiving benefits such as Pension Credit.

Full details of qualifying benefits for the new Winter Fuel Payments have not yet been announced.

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Pension Credit supplements the state pension for low-income pensioners.

But it must be claimed and is not paid automatically. In practice, this means that around 880,000 people do not apply for it, or about six out of ten of those entitled to it.

The move was criticised by charity Age UK.

Caroline Abrahams, charity director at Age UK, said: “We strongly oppose means testing the Winter Fuel Payment because our initial estimate is that up to two million pensioners who urgently need the money to keep warm this winter will not receive it and will struggle as a result; however, at the other end of the spectrum, wealthy older people will barely notice the difference – a social injustice.”

Alice Haine, personal finance analyst at Bestinvest, said: ‘Chancellor Rachel Reeves’ shock decision to scrap winter fuel payments for all pensioners risks leaving some of the most vulnerable people without heating in the coldest winter months.

‘The withdrawal of this vital support will apply from this winter, meaning many who may have carefully budgeted their finances, expecting to receive the payment this year, will now miss out.’

How to apply for the Pension Credit

Discover More information about the pension credit here And about the Rules on who is eligible here.

You can submit your application by phone at 0800 99 1234, claim pension credit online either Get a form to do it by mail..

A friend or family member can apply on behalf of an older person.

Age UK staff will also help you with applications. If you call their free helpline, they will check that you are receiving all the benefits you are entitled to, including pension credit.

Any elderly person struggling to pay their bills, or friends and family who are worried about them, can call 0800 169 65 65.

This line is open every day of the year between 8:00 and 19:00, or you can visit it Age UK Help Page Here.

Age UK also has a free, anonymous account. profit calculator which can provide an estimate of what you may be entitled to.