UK restores winter fuel payments for NI pensioners

The UK government announced plans to restore winter fuel payments for tens of thousands of pensioners in Northern Ireland. The payment, which was cut last year, affected about 250,000 pensioners. The new policy provides £200 for those under 80 and £300 for those over 80.

9 million more pensioners will be eligible for the winter fuel allowance this year.

Because of the tough decisions we took to stabilise the economy, Labour has put our public finances back on a firm footing. pic.twitter.com/T7cFCqJc2Y

— The Labour Party (@UKLabour) June 9, 2025

Margaret Galloway, a pensioner from Newtownabbey, expressed relief, saying she could feel more relaxed about heating her home. “It makes a difference.

Today we are expanding Winter Fuel Payments to benefit nine million pensioners this winter.

It is right that we continue to means-test this payment so that it is targeted and fair.

That's why we have acted to expand eligibility so no pensioner on a lower income will miss out.

— Rachel Reeves (@RachelReevesMP) June 9, 2025

I feel a wee bit more relaxed about being able to put the heat on again if I need to,” she said. Galloway noted that many pensioners were in “real financial trouble” and had to choose between heating and eating.

NEWS! Winter Fuel Payment to be reintroduced for all state pensioners but clawed back through tax if you earn £35,000+. 

My instant analysis of how it works, what it means and is it an improvement.

(Still working on subtitled version, I will post a link to it in reply to this… pic.twitter.com/NjkFxGbKwN

— Martin Lewis (@MartinSLewis) June 9, 2025

Stormont Communities Minister Gordon Lyons welcomed the government’s U-turn and plans to recommend the reinstatement of payments for Northern Ireland to the Stormont Executive. He has already discussed the issue with Finance Minister John O’Dowd and Department for Work and Pensions officials. Siobhan Casey, Northern Ireland’s Commissioner for Older People, emphasized the need for clarity regarding the payments. “It would have been preferable to make it a universal payment, but we understand that this is a move in the right direction,” Casey said. She stressed the importance of clear communication to help older people budget for their winter fuel bills. The decision to cut winter fuel payments last year led to widespread criticism. Following a Stormont monitoring round, an additional £17 million was secured, allowing Lyons to grant a £100 one-off payment to support affected pensioners. Winter Fuel Payments, introduced in 1997, help those above state pension age with their winter heating bills. Last year saw significant changes, with payments being restricted to those receiving benefits and pension credit. The restoration of winter fuel payments is expected to alleviate the financial burden for many pensioners in Northern Ireland, ensuring they can keep their homes warm during the colder months.

Restores winter fuel payments

The community awaits further clarity and final approval from the Stormont Executive. In June 2025, the UK government announced changes to the eligibility criteria for Winter Fuel Payment in England and Wales. While all pensioners will still receive the payment, those with a taxable income of £35,000 or more per annum will have their payment amount claimed back via the tax system. Pensioners also have the option to opt out of receiving the payment. The Department for Work and Pensions’ Policy Simulation Model was used to model the impact of the policy changes on individuals and poverty levels in the UK. The model estimates that the policy change will have zero impact on the number or proportion of pensioners, individuals, children, and working-age individuals in any measure of poverty in 2030, compared to a policy of universal Winter Fuel Payments. The figures were created following internal interest in understanding the impact of expanding the eligibility criteria for receiving Winter Fuel Payment. They are being published to provide equal access to all those with an interest in them. Releasing this information serves the public interest by providing insight into the poverty impacts of expanding the eligibility criteria and reducing the administrative burden of answering various forms of ad-hoc enquiry. In Scotland, all pensioner households will receive a £100 winter fuel payment later this year. Wealthier pensioners will be made aware of an option to decline the payments or donate them to charity, according to Social Justice Secretary Shirley-Anne Somerville. Somerville emphasized the importance of the universal approach of the devolved Scottish scheme but highlighted the potential impact of wealthier pensioners opting out. The current plan is for all pensioner households to receive at least £100 regardless of income, while those on pension credit will receive up to £305 depending on age. UK Scottish Secretary Ian Murray criticized the expenditure of public funds on wealthier pensioners, arguing that “limited public funding” should not be allocated to “millionaire pensioners. The Scottish government launched its own winter fuel benefit last year in response to the original UK cuts. It includes extra support for those less well-off and a universal payment unaffected by income. Rising up to £305 for those over 80, it offers an “opt-out” system for better-off pensioners. Somerville stated that the opt-out mechanism had previously been effective and would be promoted. She remarked, “It’s important to have a universal system, but it’s not necessarily important that everyone receives the same amount, so the payment is tapered for those on the lowest incomes.” The funding implications of the chancellor’s announcement are still being assessed, and it remains to be seen whether the Scottish government will modify its scheme in response to changes in England and Wales.