Winter Fuel Payments will be given to pensioners on less than £35,000 a year
Payments will be made in November or Decemeber(Image: inyourArea)
There will be different rules for couples receiving Winter Fuel Payments this winter compared with pensioners living alone, the Department for Work and Pensions (DWP) has confirmed.
The Government department has issued a set of rules for pensioners in a couple and living together who are receiving the Winter Fuel Payment this year.
It comes as nine million pensioners in England and Wales are set to receive the Winter Fuel Payment from the DWP this winter after a Government u-turn, it was announced on June 11.
Payments were slashed last year as they became means tested for the first time, with only those on certain benefits receiving the payment. The move essentially lowered the income threshold to just £11,600, according to MoneySavingExpert.
The change means eligible pensioners – who have an income of or below £35,000 – will get either £200 or £300 this winter automatically.
Never miss a story with the MEN’s daily Catch Up newsletter – get it in your inbox by signing up here
Pensioners with an income above this threshold will also receive the payment but it will then be reclaimed from them in tax. This means if someone earns over £35,000 their share of the household payment will be clawed back either through the PAYE or the self-assessment tax system.
The payments will be made per household, meaning a household with more than one pensioner in will only receive one payment of up to £300. So, for example, two pensioners over the age of 80 living in the same house will get £150 each.
Income is determined on an individual basis rather than on the household income. So, if one pensioner earns above the income threshold, their share of the payment will be reclaimed through the tax system, but their partner will still get their share as long as their individual income is below the threshold.
Join the Manchester Evening News WhatsApp group HERE
Martin Lewis said this was a “good system compared to what we thought was going to happen”, having previously believed the threshold would be based on the higher earner’s income.
While most pensioners who are part of a couple will share their payment, MoneySavingExpert points out that there is an exception to this rule.
It explains: “If you’re a couple claiming Pension Credit, there’s no split. You’ll get £200 or £300 (if one of you is 80+) in one lump sum. And the clawback will not affect you, as if you earned enough for the clawback to apply, you wouldn’t be eligible for Pension Credit in the first place.”