Winter Fuel Payment eligibility criteria are set to change, leaving many low-income and vulnerable pensioners in Wales without the £200 to £300 annual payment, the fuel poverty charity National Energy Action (NEA) said on 30 September 20241. Under the revised rules, only pensioners in England and Wales who receive Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Pension Credit or Universal Credit will receive a winter fuel payment of between £100 and £300, subject to eligibility conditions, according to the British Gas Energy Trust2.
The two organisations give different figures for the scale of the change. The British Gas Energy Trust said the changes mean an estimated 10 million elderly people are no longer eligible for this form of state support2. NEA cited Age UK figures that two million vulnerable pensioners across the UK could miss out, and that 880,000 eligible pensioners currently do not claim Pension Credit and therefore miss out on the Winter Fuel Payment1. The Trust also noted that in 2023-24 it supported over 5,300 households with more than £7.8m in energy debt grants, with 5.6% of grant recipients aged over state pension age2.
The change lands alongside higher bills. NEA said energy bills were set to rise by 10% on 1 October, leaving 6 million UK households in fuel poverty, with a typical household facing an annual bill of £1,717, up from £1,5681. Households in Wales face higher than average bills, with typical households in South Wales paying £1,753 and in North Wales £1,7641. Ofgem confirmed on 26 September that energy debts are at record levels, with customers owing £3.7 billion1.
NEA's survey of 1,059 adults in Wales, carried out by YouGov between 9 and 13 September 2024, found 51% said they were likely to ration their energy use this winter, compared with 46% across Great Britain, and 31% had found it difficult to pay for their energy in the last year, rising to 51% of those on a low income1. Four per cent reported reducing their use of essential medical equipment such as oxygen and hoists1.
"As energy bills are set to rise again, by 10%, tomorrow (Tuesday 1 October), a new survey by fuel poverty charity National Energy Action Cymru and YouGov has found half of adults in Wales (51%) say it is likely they will ration energy this winter."
The British Gas Energy Trust said it was offering energy debt grants up to £1,700 for both British Gas and non-British Gas customers with debt on a credit or pre-payment meter account, through its Individuals and Families Fund2. The fund is open to British Gas and non-British Gas customers, but applicants whose energy supplier has its own support fund are unable to apply, and applicants must first receive money guidance from a money advice agency or use the online budgeting tool2.
| Item | Figure | Source |
|---|---|---|
| Winter Fuel Payment under new criteria | £100 to £300, subject to eligibility | 2 |
| Payment cited as lost in Wales | £200 to £300 annual payment | 1 |
| Estimated elderly people no longer eligible | 10 million | 2 |
| UK households in fuel poverty from 1 October | 6 million | 1 |
| Record energy debt | £3.7 billion | 1 |
| Typical annual bill from 1 October | £1,717, up from £1,568 | 1 |
| Typical bill, South Wales / North Wales | £1,753 / £1,764 | 1 |
Why it matters for households
The Winter Fuel Payment has been a universal payment for pensioner households, paid automatically to those who qualify. Tying it to means-tested benefits changes the position of pensioner households whose income sits above the benefit thresholds but below the level at which winter bills are comfortably affordable. For those households, the payment was part of the winter budget without an application.
The practical effect is that eligibility now depends on being in receipt of one of a defined set of benefits, so a pensioner household's entitlement turns on its benefit status rather than on age alone. NEA's figures indicate that pensioner households in Wales already face above-average bills, and that a substantial share of adults in Wales expect to use less energy than they need this winter1. The Warm Home Discount is a separate scheme with its own eligibility rules, and the two are not interchangeable.
For a household's energy independence, the change shifts weight towards measures that reduce consumption rather than payments that offset it. The Warm Homes: Local Grant and other grants and schemes operate on different criteria again. Pensioner households in Scotland are covered by separate arrangements, including the Pension Age Winter Heating Payment, rather than the Winter Fuel Payment.
What happens next
The 10% rise in energy bills took effect on 1 October 20241. The British Gas Energy Trust's Individuals and Families Fund reopened on 2 September 20242. No closing date for applications, and no further dates for the eligibility change, have been reported.