Warning some pensioners may have to pay back winter fuel payments - here’s what you can do about it

Some pensioners may have to return hundreds of pounds worth of winter fuel benefits if their eligibility changes.

The warning follows the announcement that the benefit will now become means-tested after Labour passed the new measures in parliament.

Chancellor Rachel Reeves recently confirmed the allowance, which can grant individuals up to £300, will be reserved for those on specific means-tested benefits from the Department for Work and Pensions (DWP).

But many are unaware that, even if they initially qualify, changes in circumstances could force them to return the payments.

The DWP has listed several scenarios in which pensioners might be required to repay their winter fuel allowance.

People could be charged if they fail to report changes in circumstances - such as a change of address or not claiming qualifying benefits - by providing incorrect details during the application process or by not declaring overpayments.

Pensioners are urged to quickly notify the DWP of any changes which may affect their eligibility, to avoid being left out of pocket.

Under the new criteria, those who do not qualify for means-tested support or who have a low income will not be eligible. So any funds awarded by mistake will need to be repaid.

Luckily, older individuals can report changes by contacting the Winter Fuel Payment Centre at 0800 731 0160. For those living abroad, the DWP has a helpline that can be reached internationally at +44 (0)191 218 7777. Taking these steps will ensure the correct criteria are being recorded before considering eligibility for the payments.

But there have been growing fears over the decision to limit eligibility, with charities warning about potential consequences.

Director of Age UK Caroline Abrahams urged the government to broaden the qualifying criteria.

She argued if Labour is committed to the new measures, the government should extend the payment to a larger number of pensioners beyond the limited group currently considered.

Ms Abrahams suggested one way to expand eligibility would be to automatically grant the winter fuel payment to pensioners receiving other benefits, such as housing benefit, council tax support, personal independence payment, attendance allowance, and carer’s allowance.

Despite this, she said even with such changes, it might not cover the many cash-strapped pensioners who would still be excluded from receiving necessary support.

She said: “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 winter fuel payment beyond the small group they have so far said will retain it.

“Even this would not be enough though because many pensioners on low incomes or in vulnerable circumstances would still miss out on a winter fuel payment when they can ill afford to do so.”

A DWP spokesperson previously said regarding the changes: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,700 this parliament through our commitment to the triple lock.

“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take-up has already seen a 152 per cent increase in claims. Many others will also benefit from the £150 warm home discount to help with energy bills over winter while our extension of the Household Support Fund will help with the cost of food, heating and bills.”