Winter fuel payments will be universal for all state pensioners in 2025, the government has announced – but there are different schemes in place for England and Wales, Scotland, and Northern Ireland.

Money Saving Expert founder Martin Lewis has issued a winter fuel payment update for state pensioners living in England and Wales, as he clarified that there are slightly different systems in place in the other two constituent nation-states of the UK.

Martin returned with the latest episode of The Martin Lewis Podcast, on which he spoke at length about the government’s new winter fuel payment system that will replace 2024’s wildly unpopular Pension Credit eligibility.

Instead, this year all state pensioners will get the £200 to £300 payment automatically, with those earning more than £35,000 in a single year having the money taken back off them in tax via HMRC. Crucially, nobody will have to apply for self-assessment who isn’t already enrolled in self-assessment, and instead the money will be recovered via PAYE.

Winter fuel payments in England and Wales and how to qualify

But, Martin said, this particular system is only in place for people in England and Wales and that Scotland and Northern Ireland are implementing their own schemes.

Martin explained: “Winter fuel payments will once again be universal, and every household which has a state pensioner living in it will automatically get the payment. The basic payment is £200 if the pensioners in the household are under 80, and £300 if they are over 80.

“However, if any individual state pensioner earns over £35,000 a year, they will have their portion of the winter fuel payment clawed back through the tax system.

“That’s the summary of how it will work in a nutshell. And actually once you get into it, it gets more complicated.”

Martin stressed that the changes only affect people in England and Wales, though Northern Ireland and Scotland governments will look at making similar changes in future.

Martin added: “The most important thing for me is the payment is now universal, yes it’s clawed back for some but it’s paid automatically so we don’t have this problem where the most vulnerable people who are the hardest to reach missing out. So that is the primary reason I say it’s a big improvement.”

Winter fuel payments in Scotland and how to qualify

Scotland has now announced its own winter fuel payment scheme. All pensioners in Scotland with an income of less than £35,000 will receive the winter fuel payment this winter, the Scottish Government has said. Pensioners will receive either £203.40 or £305.10, the Social Justice Secretary has confirmed today, so it’s not precisely the same as the England and Wales scheme.

“Following careful consideration of the options available, the Scottish Government will mirror the approach taken by the UK Government.

“We will bring forward regulations to ensure that, from this winter onwards, all pensioners will receive either £203.40 or £305.10 per household, depending on age.

“We are in discussion with the UK Government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system.

“The intention is that the payment will be recovered automatically, and pensioners will not need to register with HMRC for this or take any further action.

“This approach ensures a higher level of support which those most in need will receive. Over 720,000 Scottish pensioners are estimated to benefit from the higher payment.”

Winter Fuel Payments in Northern Ireland and how to qualify

In Northern Ireland, Communities Minister Gordon Lyons has said that winter fuel payments will also be given along the same £35,000 threshold.

He said: “Today I have engaged with Executive ministers on the re-instatement of the Winter Fuel Payment in Northern Ireland.

“My officials are continuing to work with DWP and HMRC officials to determine the number of NI pensioners impacted by this announcement, particularly the number of pensioners who exceed the £35,000 threshold.”