Treasury Minister James Murray has provided an update over the Winter Fuel Allowance from the Department for Work and Pensions (DWP) in the Commons.Treasury Minister James Murray has provided an update over the Winter Fuel Allowance from the Department for Work and Pensions (DWP) in the Commons.Treasury Minister James Murray has provided an update over the Winter Fuel Allowance from the Department for Work and Pensions (DWP) in the Commons.

Some state pensioners are set to be handed a £100 increase in payments which is “automatic”. Labour Party Treasury Minister James Murray has provided an update over the Winter Fuel Allowance from the Department for Work and Pensions (DWP) in the Commons.

Mr Murray spoke to Independent MP John McDonnell and explained over the Labour Party government u-turn: “The Government announced in June 2025 that the Winter Fuel Payment will be made universal in England and Wales from winter 2025.

“Subsequently, the Scottish Government and Northern Ireland Executive have confirmed that they will mirror the approach for England and Wales.

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“Winter Fuel Payments of £200 will be made for a household with someone of State Pension age and £300 for a household with someone aged 80 or over. They will be paid automatically to anyone who has not opted out of getting a payment.”

He said: “Individuals who are of State Pension age and have total income over £35,000 will have their Winter Fuel Payment recovered through the tax system. The amount recovered will be equal to the full value of the Winter Fuel Payment.

“If a pensioner’s total income is above the income threshold, it will be automatically recovered through PAYE, or through their Self-Assessment return if they pay tax that way.”

Mr Murray added: “The Government will publish further details of the operational impacts on HM Revenue and Customs of making these changes in a Tax Information and Impact Note at Budget 2025, alongside draft Finance Bill legislation on the tax recovery of the Winter Fuel Payment.”

Winter Fuel Payments are worth £200 per household, or £300 per household where there is someone aged 80 or over. Shared payments are made to pensioners not on an income-related benefit.

The payment will be recovered from individuals via HMRC based on their individual taxable incomes.

There will be no need for household incomes to be aggregated.