This winter, the Department for Work and Pensions (DWP) is reinstating Winter Fuel Payments for all eligible pensioners across the UK. However, the government will automatically claw back the payment from those with incomes exceeding £35,000 per year, unless they choose to opt out.
The Winter Fuel Payment aims to assist pensioners with heating costs during the colder months, offering a tax-free grant depending on household circumstances. Typically, pensioners living alone receive between £200 and £300, depending on their age. Those born before 22 September 1945 receive £300, while those born between 22 September 1945 and 21 September 1959 receive £200.
Interestingly, a DWP loophole means that when more than one person of state pension age lives in the same home, the total Winter Fuel Payment can add up. For example, two individuals sharing a house who qualify independently could each receive £300, amounting to £600 for the household.
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In contrast, married couples who jointly claim Pension Credit receive only one payment of £300 per household. This means that two siblings aged 80 living together and both qualifying separately will each receive £300, while a married couple next door on a joint claim would only get £300.
In summary, the DWP’s rules allow certain households—particularly those with multiple pensioners who are not considered a couple—to benefit from what effectively amounts to double the standard Winter Fuel Payment. Meanwhile, higher earners will see payments reclaimed automatically to target support to those most in need.