Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of providing a Winter Fuel Payment for older people (a) based on Council Tax Band and (b) as a payment liable to tax.
It would not be possible to pay winter fuel payments to pensioners according to their council tax band as my department does not hold data on people’s council tax banding. Additionally, council tax band is not always an accurate reflection of someone’s income.
Matters of taxation are for His Majesty’s Treasury. The tax treatment of social security benefits is based on the type of payment and why it is provided. In general, benefits that are designed to replace income are taxable, including the State Pension. Benefits that meet specific costs, such as Winter Fuel Payments, are not taxable.