Winter Fuel Payment: Taxation

(asked on 2nd June 2025) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what would be the anticipated net revenue gain from taxing the Winter Fuel Payment.


Answered by
Baroness Sherlock Portrait
Baroness Sherlock
Minister of State (Department for Work and Pensions)
This question was answered on 18th June 2025

On 9 June the Government announced that, from this winter 2025/26, Winter Fuel Payment eligibility will be expanded in England and Wales. Pensioners with incomes below or equal to £35,000 will benefit from a Winter Fuel Payment. This will mean that the vast majority of pensioners - over three quarters, or 9 million individuals - will benefit this parliament. We estimate that this will save around £450m per year compared to a policy of universal Winter Fuel Payments in England and Wales. Winter Fuel Payments are transferred in Northern Ireland and the policy area is devolved in Scotland. Last Autumn, the Office for Budgetary Responsibility certified that targeting Winter Fuel Payments towards pensioners in receipt of Pension Credit would save £1.65bn per year UK-wide by 2029/30, relative to universal Winter Fuel Payments in England and Wales.

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