A new, simplified system for the Winter Fuel Allowance is proposed to make it fairer and more efficient.

How it would work:

Eligibility: The allowance would be available to individuals with an annual taxable income of under £50,000. Eligibility would be confirmed using data from the previous year's income tax return, which must be submitted by the end of October.

Simplified Payments: The complex banding system, including the separate rate for those over 80, would be removed. A single, lump-sum payment would be made to all eligible recipients at the end of November.

Payment Rates:

• £300 for those who live alone or with someone who doesn't qualify
• £150 for those who live with another qualifying person

Yes, not all pensioners would receive Winter fuel allowance but the exclusion point is much higher, than when the cut was introduced in 2024.

While this reform would cost an additional £750 Million, it ensures a streamlined and effective system that provides targeted support to those who need it, without unnecessary complexity.