DWP Winter Fuel Payment warning as may need to give back £300

The Department for Work and Pensions (DWP) has issued a warning to pensioners about their Winter Fuel Payment

Pensioners have been alerted that they may need to return their Winter Fuel Payment to the Government after initially receiving it. This follows the announcement that up to £300 in energy bill support will be means-tested going forward, having previously been universal.

In July, Chancellor Rachel Reeves confirmed that the allowance would now be reserved for those on means-tested payments from the Department for Work and Pensions (DWP), such as Pension Credit. This is a setback for those of state pension age who have struggled with the cost of living in recent years, particularly with regard to energy costs.

However, older Britons who still meet this eligibility criteria may not realise they are still at risk of losing their Winter Fuel Payment. There are certain circumstances in which pensioner households will need to repay the Winter Fuel Allowance to the DWP.

When do pensioners need to pay back Winter Fuel Payment?

The DWP may contact households in three specific situations to inform them that the allowance needs to be returned. These include: when someone does not report a change in circumstance, such as moving address or no longer claiming their qualifying DWP benefit for the Winter Fuel Payment; when someone provides incorrect information in their application for the allowance, such as sharing the incorrect age; and when someone is overpaid money from the DWP.

UK residents are being urged to notify the Department for Work and Pensions (DWP) of any changes in their circumstances that might affect their claims, to prevent any issues. Currently, those not eligible for means-tested support or on a low income cannot claim the payment under new rules, meaning any payments made in error will have to be repaid.

Older individuals can inform the government of any changes by calling the Winter Fuel Payment Centre at 0800 731 0160. For those living outside the UK, the DWP helpline is reachable at +44 (0)191 218 7777.

Age UK's charity director Caroline Abrahams has recently urged the government to broaden the eligibility criteria amidst growing discontent over means-testing. She stated: "If [Labour] is dead set on pressing ahead, the very least they should do is to greatly expand the numbers of pensioners who will receive a WFP beyond the small group they have so far said will retain it."

She suggested: "They could achieve this in part by automatically giving the Payment to pensioners on other benefits, such as Housing Benefit, Council Tax Support, Personal Independence Allowance, Attendance Allowance and Carers Allowance."

However, she added: "Even this would not be enough though because many pensioners on low incomes or in vulnerable circumstances would still miss out on a WFP when they can ill afford to do so."