The UK Department for Work and Pensions (DWP) has announced important changes about the Winter Fuel Payment. This payment helps pensioners cover heating costs during the cold months.
While millions of people will receive between £200 and £300 this winter, some groups will not qualify. Even if they meet the age rule, they may still miss out. Let’s look at who gets the payment, who doesn’t, and how much households should expect.
What Is the Winter Fuel Payment?
The Winter Fuel Payment is a government benefit given to older people to help with energy bills. For the 2025–2026 winter:
- It applies to those born before 22 September 1959.
- People with a taxable income of £35,000 or less can keep the full amount.
- Payments range between £200 and £300, depending on personal circumstances.
- Around nine million pensioners will benefit.
Most eligible people will get a letter in October or November 2025 confirming the amount.
Who Will Not Get the Payment?
Even if someone meets the age and income criteria, four groups are excluded.
Groups Not Eligible
| Group | Reason for Ineligibility |
|---|---|
| People living outside England and Wales | Only residents of these areas are covered. |
| Those in hospital for free treatment for the week of 15–21 September 2025 | Long hospital stays mean they cannot claim. |
| People in prison during that same week | They are not eligible. |
| Residents of care homes who also get certain benefits | Excluded if they receive Universal Credit, Pension Credit, Income Support, income-based JSA, or income-related ESA. |
Additional Income Rule
If someone earns more than £35,000, they will still receive the payment, but HMRC will reclaim it later. This will be done by:
- Changing the tax code for the 2026–2027 tax year, or
- Adding it to the Self Assessment tax return for 2025–2026.
Energy Price Update
Starting October 1, 2025, the energy price cap will rise by 2%. For the average household:
- Bills will increase by about £2.93 per month.
- A typical household will pay around £1,755 per year by Direct Debit.
- This is still £625 cheaper compared to the peak of the energy crisis in early 2023.
Why These Changes Matter
The government wants to ensure that Winter Fuel Payments go to those most in need. With energy prices still high, the payment is a lifeline for millions of pensioners. But those in special circumstances such as living abroad, in prison, or in long-term hospital or care homes may not benefit.
The DWP’s Winter Fuel Payment remains a vital support for older people facing rising energy bills. While most pensioners will receive between £200 and £300, four groups are excluded.
Additionally, higher-income earners may have their payments reclaimed through the tax system. With energy costs increasing again in October 2025, this scheme continues to be an essential part of helping pensioners manage living costs during the winter.
FAQs
Who will get the Winter Fuel Payment in 2025–2026?
Anyone born before 22 September 1959 and living in England or Wales with a taxable income under £35,000 will receive it.
Can I get the payment if I live in a care home?
Yes, but not if you receive certain benefits like Pension Credit, Universal Credit, JSA, or ESA. In that case, you will not qualify.
Will I lose the payment if my income is above £35,000?
You will still get it, but HMRC will reclaim it later through your tax code or tax return.