‘All lower income pensioners’ should receive winter fuel payment after U-turn, minister says

A minister has confirmed that “all lower income pensioners” should receive the winter fuel payment after the government outlined the detail of its U-turn on the policy.

Torsten Bell, the parliamentary under-secretary of state for pensions, said that “all pensioners with incomes up to and including £35,000” will now benefit from support, as well as “those on pension, credit and other income related benefits.”

He added: “We are acting to make sure all lower income pensioners receive support. The new individual £35,000 threshold is significantly above the income of pensioners in poverty and broadly in line with average earnings.

“It means that the vast majority, over three quarters or 9 million pensioners, will benefit from a winter fuel payment. This change ensures that the means-testing of winter fuel payments has no effect on pensioner poverty.”

The ministerial statement, delivered in the House of Commons, came after chancellor Rachel Reeves confirmed that while the payment will still not be paid to all pensioners as in previous years, it will be extended to far more than last winter.

Bell added: “Means-testing the winter fuel payment in England and Wales like this will save around £450 million a year, subject to certification by the Office for Budget Responsibility [OBR].

“Compared to the system of universal payments, it will cost around £1.25 billion in England and Wales compared to the position last winter…

“These are changes that will be fully funded at the next fiscal event, the autumn budget. That will ensure final costings and funding decisions come alongside the latest forecast from the OBR.

“We will ensure that the government’s non-negotiable fiscal rules are met.”

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