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People above the State Pension age may be entitled to claim several additional payments and support to assist with energy bills throughout the year.
Some of these payments won’t be issued until later in 2025, but could still be worth considering now when budgeting for household expenses. New applications for Pension Credit submitted before September 22, if successful, will qualify for the higher rates of Pension Age Winter Fuel Payment.
This date is crucial as it guarantees an automatic payment during the designated payment period. Any applications made after this date, until mid-December would be paid in arrears, reports the Daily Record.
Winter Fuel Payment U-turn
On Monday, Chancellor Rachel Reeves announced that over nine million pensioners in England and Wales will automatically receive this year’s Winter Fuel Payment. This comes after a reversal by the UK Government on its previous decision to restrict the annual heating allowance to pensioners receiving a means-tested benefit such as Pension Credit.
Pensioners born before September 22 1959 will automatically receive payments of £200 if they are aged between 66 and 79, or £300 if they are 80 or older, later this year.
However, pensioners earning more than £35,000 annually will not be eligible for the Winter Fuel Payment. Those surpassing this income limit will need to return the funds either through PAYE or by submitting a Self-Assessment tax return.
The government has also announced an opt-out option for the payment, though specific details on this have not yet been announced.
Pension Credit – An average support worth £4,300
Nearly 1.4 million people across Great Britain receive Pension Credit. This could offer an average of £4,300 in extra assistance during the financial year 2025/26.
Some older people might assume that having savings or owning their property disqualifies them from this means-tested benefit. However, even a minimal award of just £1 per week can lead to additional support.
People can use the Pension Credit calculator on GOV.UK to determine if you should make a claim, you’ll need information about:
- Earnings, benefits and pensions.
- Savings and investments.
Alternatively, pensioners can directly contact the Pension Credit helpline to start a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday. Comprehensive details can be found on GOV.UK here.
Financial assistance for pensioner households in 2025
The financial aid set to be provided during 2025/26 includes:
- DWP Christmas Bonus (£10) – issued by DWP
- Winter Fuel Payment (£100 – £300) – cash payments issued by DWP to pensioners in England and Wales only
- Warm Home Discount (£150) – paid directly from DWP to energy providers and usually added as credit to the customer’s electricity account
Winter Fuel Payments – ranging between £200 and £300
The DWP has confirmed that the Winter Fuel Payment for 2025/26 will be allocated to everyone born prior to September 22, 1959.
Automatic payments of £200 will be made to those aged between 66 and 79, while individuals aged 80 or above will receive £300. There is no requirement to apply for this payment.
To qualify for this winter’s payment, pensioners must also have an annual income below £35,000. Information about the option to opt out of the payments will be announced in due course.
Full details on the amount people will receive from DWP, based on their household age and living circumstances, will soon be published by the DWP on GOV.UK here.
Warm Home Discount – £150 paid directly to your energy provider
The Warm Home Discount Scheme for winter 2025 to 2026 usually starts in October and offers individuals on certain benefits a £150 reduction on their electricity bill.
The DWP directly transfers funds to energy suppliers between October and March. If your supplier provides both gas and electricity, you may be eligible to receive the discount on your gas bill instead – simply contact them once the scheme opens to find out more.
If you’re a credit customer, the £150 will be credited to your electricity account. For those using Pay As You Go or Prepayment methods, a voucher will be sent to you, which can be used to top up your meter.
This year, eligibility rules are being revised to extend support to more households – further details can be found here.
DWP Christmas Bonus – £10
This bonus is a one-off, tax-free payment of £10 made to individuals receiving State Pension or certain other benefits during the qualifying week, typically the first full week of December.
There’s no need to apply for this additional £10 as it should automatically be deposited into the account where you usually receive your State Pension or benefit payment. It’s processed as a separate payment, independent of your regular State Pension or benefit payment, so it might arrive on a different day.
Eligible benefits include:
- Incapacity Benefit at the long-term rate
- Severe Disablement Allowance (transitionally protected)
- Disability Living Allowance
- War Disablement Pension at State Pension age
- Carer Support Payment
- Pension Age Disability Payment
- Widowed Parent’s Allowance
- Adult Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Armed Forces Independence Payment
- Child Disability Payment
- Pension Credit – the guarantee element
- War Widow’s Pension
- Widow’s Pension
- Attendance Allowance
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- Personal Independence Payment (PIP)
- Mobility Supplement
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- State Pension (including Graduated Retirement Benefit)
- Industrial Death Benefit (for widows or widowers)
- Widowed Mother’s Allowance
- Carer’s Allowance
More information about the Christmas Bonus can be found here.
