Winter Fuel Payment halved for some state pensioners due to '3-month rule'

A three-month rule is poised to see some state pensioners' Winter Fuel Payment halved to a mere £100.

This week, from 15th to 21st September, is crucial for pensioners aiming to secure their Winter Fuel Payment for the upcoming winter. This is because your personal circumstances during this seven-day period determine whether you qualify for a Winter Fuel Payment and the amount you'll receive.

Last year, the government altered the rules to link the payment to Pension Credit, meaning you'd need to be claiming this low-income benefit to qualify. However, this year, the rules have been amended to allow state pensioners to earn up to £35,000 and still retain the money.

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Typically, the standard Winter Fuel Payment is set at £200, but this can increase to £300 if you're aged over 80 by this qualifying week.

However, there are certain situations where the payment is halved, down to £100 if you're under 80 or £150 for those over 80, reports the Express.

This is due to a three-month rule for those who resided in care homes leading up to this qualifying week. If you were in a care home between June 23 and September 21 2025, and you don't receive Pension Credit, Universal Credit, income-related Employment or Support Allowance, your payment will be halved to just £100 or £150.

If you reside in a care home and do claim one of the aforementioned benefits, you won't be entitled to a payment at all.

Age UK clarifies: "You're not entitled to Winter Fuel Payment if you live in a care home from 23 June to 21 September 2025 and you receive Pension Credit, Universal Credit or income-related Employment and Support Allowance.

"If you live in a care home and you don't receive one of these benefits, your Winter Fuel Payment is £100 if you are under 80, if you are aged 80 or older it is £150."

Additional circumstances may also see your payment cut. For instance, pensioners over 80 who share accommodation with another qualifying over-80 will pocket £150 rather than £300.

State pensioners under 80 living with someone eligible for the payment receive just £100. Those who do meet the criteria for a Winter Fuel Payment will receive the cash automatically without needing to take any action.

The DWP will dispatch notification letters during October and November, with payments expected to arrive in November or December.

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