Rules for the Government support scheme have been confirmed

09:22, 11 May 2026Updated 09:52, 11 May 2026

Labour issues major announcement over HMRC tax bills for state pension

Labour issues major announcement over HMRC tax bills for state pension

Some state pensioners have been told they won’t qualify for extra payments later this year.

It all relates to qualifying rules for Winter Fuel Payments, which are worth either £200 or £300.

The winter allowance is no longer universal for all over-65s. It’s now linked to income.

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So not everyone gets it as some are now judged to be too well off.

Pensioners will now get to keep the cash if their annual incomes are below £35,000, under rules confirmed by Rachel Reeves.

While others on higher incomes initially get the payments, they have to pay it back later on.

Winter Fuel Payments normally land in bank accounts each November for those who qualify.

Those aged under 80 get £200 while over-80s get £300.

Higher payments are in recognition older people tend to spend more time in the house.

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The money is designed to help older people on lower incomes keep their homes warm during the colder months.

But changes to eligibility criteria over recent years have damaged the Government.

Households with higher incomes are judged to be financially comfortable enough to cope without the bonus and there was a view money was previously being wasted on these households who didn’t need it.

Labour was forced to backtrack after winning the 2024 general election after initially cutting payments for all but the very poorest, leaving many on low incomes to go without.

The scale of the backlash forced ministers into a U-turn but it’s a decision Labour never fully recovered from.