Winter fuel payment recipients plunged to 1.3 million after means-testing, DWP figures show

New Department for Work and Pensions figures show the number of people receiving the winter fuel payment fell to 1.3 million after the government introduced means-testing last year, a drop of about 9.3 million from the roughly 11 million who previously received the annual support.

The Treasury decision to restrict the payment to people on specified low-income benefits in England and Wales led to the dramatic fall, the DWP said. In June the chancellor announced a partial reversal of that policy, restoring payments to the majority of pensioners and reversing the sharp decline in recipients.

The winter fuel payment, intended to help pensioners meet higher energy costs in winter, had been previously paid to nearly all people of state pension age. In July 2024 the government said future payments in England and Wales would be restricted to those receiving certain means-tested benefits, a move it said was necessary because of the state of public finances.

Following widespread anger and criticism, including from some Labour MPs who linked the policy to poor results in local elections in May, the chancellor announced in June that pensioners with an annual income of £35,000 or less would again be eligible. The government said letters notifying eligible households will be sent in October or November.

Under the revised rules, more than three-quarters of pensioners are expected to receive the winter fuel payment this coming winter. The payment in England and Wales will be £200 for people of state pension age up to 79 and £300 for those aged 80 or older. The Scottish government has said it will match the policy and increase the payment in line with inflation, making it £203.40 or £305.10 per household this winter.

The DWP numbers quantify the impact of the brief period of means-testing, when only people on specified benefits such as pension credit qualified in England and Wales. That change reduced recipients from the long-standing level of about 11 million to 1.3 million, the department's latest data shows.

Energy regulator Ofgem is due to set a new price cap in October, which is expected to raise typical household energy bills by around 2% unless households are on fixed-price deals. The government has pointed to rising public spending pressures as a rationale for earlier plans to curb universal support, but ministers have since moved to reinstate broader eligibility.

Officials also signalled expectations of a likely rise in the state pension next April, information that will be of interest to many pensioner households planning finances for the coming year. Ministers have said the partial U-turn on the winter fuel payment will be matched by Scotland and will provide crucial help during the colder months.

The DWP figures and the chancellor's announcement mark a swift policy reversal less than a year after the government introduced means-testing that briefly cut the number of recipients by millions. The restored payments will begin to be communicated to pensioners ahead of the winter, with detail on exact timings and eligibility letters due in the autumn.