Glossary · UK
What is Winter Fuel Payment?
An annual tax-free payment towards heating costs for pensioners, now means-tested so it only goes automatically to those receiving Pension Credit or another qualifying benefit.
Full Definition
The Winter Fuel Payment is an annual, tax-free payment made to help older people with heating costs over the winter. It is paid automatically to people who have reached State Pension age, but since means-testing was introduced it is only paid automatically to those who also receive Pension Credit or another qualifying means-tested benefit; pensioners with income above the relevant threshold are no longer eligible unless they successfully claim and qualify for Pension Credit or a similar benefit. This change made claiming Pension Credit considerably more valuable for lower-income pensioners, since an award -- even a small one -- passports the household into the Winter Fuel Payment as well as other help such as full Council Tax Reduction and a free TV licence at 75. The payment amount depends on the claimant's age and household circumstances (such as whether they live alone or with another qualifying person), and it is paid once a year, usually in November or December, direct into the recipient's bank account without needing a separate claim if they already receive a qualifying benefit.