The Department for Work and Pensions (DWP) has confirmed that four particular groups will not qualify for the Winter Fuel Fund of £300 for winter 2025/26, even if they reach the state pension age criteria. This follows a government reversal that reinstated Winter Fuel Payments for nearly all pensioners over state pension age and income eligible, 35 k or below, removing the restriction of only means tested benefit claimants.
Groups Not Eligible for Winter Fuel Fund
| Group | Eligibility Status |
|---|---|
| People domiciled outside of England and Wales | Not eligible |
| Individuals receiving free hospitalization during qualifying weeks (15-21 Sept 2025 and same week previous year) | Not eligible |
| Those under control orders restricting access to public benefits | Not eligible |
| Individuals retained in custody during the entire qualifying week (15-21 Sept 2025) | Not eligible |
Moreover, pensioners residing in care homes are eligible to receive the payment unless both of the following conditions are met: they are enrolled in certain means-tested benefits like Universal Credit or Pension Credit, and they have resided continuously in the care home since or before June 23, 2025.
Criteria Overview and Payment Information
Individuals must have been born before September 22, 1959, and usually live in England or Wales to qualify for the Winter Fuel Payment. The payment is processed automatically, so eligible pensioners receive a letter in October or November informing them of the payment’s confirmation. The amount is determined based on the claimant’s age and circumstances during the qualifying week in September.
Income-Based Recovery
Claiming Winter Fuel Payment becomes impossible for pensioners with an annual income exceeding £35,000. Although such pensioners will continue to receive the Winter Fuel Payment during the initial phases, HMRC will reclaim the entire payment amount through taxation. This creates a situation for higher-earning pensioners where the payment is effectively reclaimed, neutralizing the benefit for those surpassing the income limit.
Background on Policy Changes
The public outrage was triggered by scrapping the Winter Fuel Payment on Pension Credit the previous year. Its award was reinstated with expanded eligibility in June 2025, but recovery and income-based rules for partial clawback recovery continued to apply with the noted exclusions for the four groups. This approach seeks to balance providing support to most pensioners while managing spiraling government debt and spending on pensioners, plugging a £22 billion funding gap while protecting lower- and middle-income pensioners from aid clawback.