9,000,000 pensioners to receive winter fuel payments, says Reeves

SOME nine million pensioners in England and Wales will receive the winter fuel payment this winter, the Chancellor has announced in a £1.25bn U-turn of UK Government plans.

- DAVID LYNCH, CHRISTOPHER MCKEON and CAITLIN DOHERTY

The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it, because anyone with an income of under £35,000 a year will now get the payment automatically.

Confirming the U-turn, Rachel Reeves said the UK Government had “listened to people's concerns” about the decision to limit the payment to the poorest pensioners last winter, and was now able to widen eligibility because Labour had restored “stability” to the economy.

Ministers have insisted no additional UK Government borrowing will be needed to cover the costs of the reversal, prompting warnings of tax rises on the horizon.

Those with an income above the £35,000 threshold will also receive the payment, but it will then be reclaimed from them in tax.

To be eligible for the winter fuel allowance, a person will need to have reached state pension age by the week starting September 15 this year.

Devolved authorities in Scotland and Northern Ireland will each receive a funding uplift so they too can meet the new threshold.

Pensioners who do not want to receive the payment will be able to opt out, according to the Treasury.

The decision to limit the winter fuel payment to only those who claimed pension credit was one of Labour's first acts in government, aimed at balancing what was described as a £22bn “black hole” in the public finances.

This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million.