The government has started putting new eligibility rules for the winter fuel payment in place after changes to the fund last year sparked outcry.
After Labour rowed back on the decision to restrict the payment to all but the poorest pensioners, this year will see those earning £35,000 or less receive support.
Preliminary legislation for the measure confirms that any pensioner earning over this amount will be expected to pay back the payment – worth £200 or £300 – through the tax system.
This will be done either by HMRC changing the recipients tax code for the year, or by requiring a self-assessment tax form to be returned.
The changes mean that around 7.4 million more pensioners will receive the payment this year, while two million will still miss out.
But the Social Security Advisory Committee (SSAC) – which scrutinises the government’s welfare policy – has criticised the “complexity” of this system, which it says could make it more difficult for vulnerable groups.
Although pensioners receiving Pension Credit will not be subject to the tax system, those on other benefits like Housing Benefit, Personal Independence Payment and Attendance Allowance still will be.
“These pensioners often face higher energy costs due to low quality rental housing or health conditions requiring increased heating, yet they are subject to the same £35,000 taxable income threshold as others,” the SSAC says.
It adds that the policy should be reviewed on these grounds to clarify the government’s intention.
Pensions minister Torsten Bell said he did not agree, adding that a review at this stage would not “provide certainty to pensioners about the system that will operate in future years.”
A DWP spokesperson said: “We are committed to supporting pensioners and thanks to our Triple Lock, millions will see their yearly State Pension rise by £1,900 this parliament.
“Nine million pensioners will have help with their fuel bills this coming winter.
“Disabled pensioners can also receive Attendance Allowance, worth up to over £5,600 a year and we urge everyone eligible to apply.”
How to receive the winter fuel payment
The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter, meaning no pensioner will need to take any action in order to receive the payment.
Those with incomes above the £35,000 threshold will see the payment automatically recovered via HMRC, or they have the option to opt out.
When is the deadline to apply for the winter fuel payment?
There is no deadline to apply for the winter fuel payment, as the benefit will be paid out automatically to all pensioners.
However, there will be a deadline to apply to opt out of the payment if you earn above the £35,000 threshold. The deadline, and details of how to apply, are yet to be announced by the government.
