Ministerial Statement by Minister Gordon Lyons MLA - Update on Winter Fuel Payments

Date published: 10 June 2025

Since then, I have consistently made clear my total opposition to the changes. I raised my concerns directly with the Secretary of State for Work and Pensions, the Secretary of State for Northern Ireland and a number of Labour government Ministers.

Additionally, I along with Executive colleagues, also wrote to the Prime Minister urging him to reverse the changes announced.

I recognised the need to act quickly when this announcement was made and I engaged with Ministerial colleagues to determine how we might be able to help pensioner households in Northern Ireland.

Mr Speaker, members will be aware that I successfully bid and received an additional allocation of £17m which I used to make a one-off £100 fuel support payment to pensioner households in Northern Ireland.

Almost 250,000 payments were issued, as promised, to most Northern Ireland pensioners by the end of March 2025.

While this one-off payment helped to support pensioners last winter, I know that many of them remained anxious and worried about their energy bills this winter and beyond.

I therefore welcome Treasury’s announcement yesterday to reinstate the Winter Fuel Payment to everyone over State Pension age with an income of, or below, £35,000 a year.

This increased threshold means that no lower or middle-income pensioners will miss out.

Mr Speaker, my opposition to restricting eligibility for the Winter Fuel Payment has been absolute and I am glad that the Labour government has now recognised that error.

I know that many of our pensioners are still anxious and worried about what yesterday’s statement means for them. Therefore, I have acted quickly, to provide clarity and certainty about what will happen to the Winter Fuel Payment in Northern Ireland.

After yesterday’s announcement I asked my officials to engage with DWP to understand the impact for Northern Ireland. I also met with Torsten Bell MP, Parliamentary Secretary (HM Treasury) and Parliamentary Under-Secretary (DWP) along with the Finance Minister John O’Dowd.

Today I have engaged with Executive Ministers, and I am pleased to announce that pensioners in Northern Ireland will be able to receive a Winter Fuel Payment, in the same way their neighbours will in England and Wales.

For clarity, the criteria are as follows:

• Everyone over the State Pension age in Northern Ireland will receive a Winter Fuel Payment (WFP) this winter.
• Pensioners with an income of, or above, £35,000 a year will have their payment automatically recovered by HMRC. This threshold is well above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer.
• There will be an option to opt out however, work is ongoing to finalise a solution which will be announced at a later stage.
• My officials will take forward the necessary subordinate legislation for NI. This is expected to be very straightforward and completed by the end of July.
• In terms of the recovery process, HMRC will bring forward the changes required in the Finance Bill. As this is a reserved matter, DoF and HMT will engage and agree the legislative process for Northern Ireland.
• Winter Fuel Payments are worth £200 per household, or £300 per household where there is someone over 80.
• For those with an income of £35,000, or above, the payment will be recovered from individuals via HMRC based on their individual taxable incomes.
• For example - in a couple household where both pensioners are under 80 and not in receipt of Pension Credit, each will receive a payment of £100 (i.e. £200 for the household). If both have an income of £35,000 or above, HMRC will recover the £100 payment from each individual. If one has income below £35,000, they will keep the £100 payment while the other £100 will be recovered.
• Payment will be recovered via PAYE for the vast majority, or in their Self-Assessment tax return for the minority who file and pay their taxes in this way. HMRC will work closely with representative bodies to ensure the process is as simple as possible with clear guidance for taxpayers.
• Importantly, the additional Winter Fuel Payment costs are covered through Annual Managed Expenditure, so there are no additional costs to the NI Block.
• 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.

Mr Speaker, it is extremely important to say at this early stage that there are already a number of scams circulating since yesterday’s announcement asking pensioners to provide their personal details, bank account, etc.

Let me be absolutely clear, pensioners do not need to do anything to receive the Winter Fuel Payment this year.

If anyone gets a suspicious email or text from GOV.UK, the Department for Work and Pensions (DWP) or the Department for Communities asking for bank details, they should report it to Action Fraud. They should not respond or click on any links.

DWP or the Department for Communities will not ask for bank details by text or email or send a link to click into within a text or email.

Mr Speaker, I have consistently said that the Winter Fuel Payment changes announced by the Labour Government last year were a mistake.

I have taken every opportunity since then to call on the Government to reverse their mistake. I am pleased that they have listened.

I acted quickly last year to provide the one-off £100 fuel support payment, and I have acted quickly again to provide clarity and certainty to every pensioner in Northern Ireland.

I commend this statement to the House.