The UK government, led by Chancellor Rachel Reeves, has announced a major policy U-turn, making over three-quarters of pensioners in England and Wales eligible for the winter fuel payment. The payment, worth up to £300, will now be available to those with an annual income of £35,000 or less, reversing a previous policy that limited it to pension credit recipients. This reversal, costing £1.25bn, comes after Labour's poor local election results and widespread concerns from charities and MPs, and is announced ahead of the government's Spending Review.
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TL;DR: Key points with love ❤️The UK government, led by Chancellor Rachel Reeves, has announced a major policy U-turn, making over three-quarters of pensioners in England and Wales eligible for the winter fuel payment. The payment, worth up to £300, will now be available to those with an annual income of £35,000 or less, reversing a previous policy that limited it to pension credit recipients. This reversal, costing £1.25bn, comes after Labour's poor local election results and widespread concerns from charities and MPs, and is announced ahead of the government's Spending Review.
Trending- 1 Last year: Winter fuel payment cut, limited to pension credit recipients; Gordon Lyons announced changes for Northern Ireland.
- 2 Before 2025-06-09: Labour's poor local election results.
- 3 2025-06-09: Chancellor Rachel Reeves confirmed the U-turn on winter fuel payment eligibility.
- 4 Wednesday (after 2025-06-09): Government's Spending Review details to be announced.
- 5 Autumn (2025): Rachel Reeves to set out how the policy will be paid for in the autumn Budget.
- 6 November or December (2025): Eligible households to receive payments.
- 7 Late 2025: New Scottish Parliament benefit for fuel payments to be ready.
- Increased financial support for millions of pensioners
- Significant government spending (£1.25bn)
- Potential for new complexity in the tax system
- Political fallout (criticism of 'humiliating U-turn')
- Sets a precedent for future policy reversals based on public pressure
What: The UK government's policy U-turn on winter fuel payment eligibility, expanding it to pensioners with incomes up to £35,000.
When: Announced on 2025-06-09. Payments typically in November or December. Spending Review details announced on Wednesday. Original cut last year.
Where: England, Wales, UK. Bath (specific city mentioned for a pensioner). Scotland, Northern Ireland (different policies).
Why: The government 'listened to people's concerns' and faced criticism for its previous policy, which was blamed for poor local election results. Economic improvements are cited as enabling the change.
How: By increasing the income threshold for eligibility to £35,000, making it means-tested at a higher level. The cost will be set out in the autumn Budget.