The Winter Fuel Allowance

If you are of state pension age and are a UK resident with an annual income of £35,000 or less then the government will give an annual amount of money to help heat the home during the winter months. Those with higher incomes will have the payment recovered through the tax system. How much you will receive as a winter fuel allowance will be dependant on the age of the claimant and whether it is a couple living in the home or an individual.

What is the Winter Fuel Allowance?

The winter fuel allowance or winter fuel payments are payments made to individuals who are of state pension age. The payments are intended to be for heating the home during the winter months but the money received can be spent however the claimant wants. It does not have to be spent heating the home or used to pay for household energy bills.

Eligibility for the Winter Fuel Allowance

Anyone of state pension age can claim for the winter fuel allowance. To qualify you have to be born on or before 28 June 1960, for 2026/27 (this date changes every year). The amount of money received will be dependant on age. The claimant must also normally reside in the UK or Northern Ireland. As with any government scheme there are certain exemptions that do apply. You might not be eligible for the allowance if:

• You reside in a care or residential home and receive certain state pensions or job seeker's allowance.
• You have been in hospital and have been receiving treatment for over one year.
• You do not normally reside in the UK or Northern Ireland.

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How Much are the Payments?

If the claimant is 60 to 79 years of age and is eligible then they will receive between £100 and £200. If they are 80 and over then the payments will increase and they may receive up to £300. The amount will also depend on partners living in the home. If a couple lives together, and this can mean either married or cohabiting as if they were a married couple, then only one payment will be made to a person receiving job seeker's allowance or pension credits. All other couples will receive £100 each if they meet the age eligibility requirements.

How to Claim for Payments

Winter fuel payments are automatically sent to people of state pension age who are receiving state pension or some form of social security payment, provided their annual income is £35,000 or less. The payments should be ongoing each year unless there has been a change in circumstances. Payments will usually reach people by Christmas each year and if they have not been received then individuals should contact their local government benefits agency. There is also a winter fuel payment help line that can be contacted if payments are not received by Christmas each year.

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How Payments are made

Payments can be made into bank accounts, building society accounts or post office accounts; it is entirely up to the individual. Payments can also be made by cheque to the eligible person's home address. The winter payment agency will notify the claimant by letter as to when and where the payment will be sent. All cheques must be cashed within at least one month of the date on the cheque. Anyone who feels their payments are incorrect should contact their local benefits agency or the winter fuel payments help line.

Change of Circumstances

A person who receives the winter fuel allowance must notify the agency if their circumstances change in any way. This could include state benefits and pensions stopping or starting, and other people living in or leaving the home. The winter fuel agency will be able to inform the claimant if any of these changes will make a change to their winter fuel payments in any way.

The winter fuel allowance is an additional tax free payment that should be claimed. It does not have to be used to heat the home and can be spent on anything the claimant wishes. It should be seen as a small extra source of income and can be figured into any retirement budgeting plan.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Pension Income Tax Estimator lets you estimate the income tax you will pay on your pension, including your personal allowance and the 25 percent tax-free lump sum, so you know what you will actually take home. Try it now →