DWP and Government to issue £524 one-off payment to pensioners
People over the State Pension age could be eligible for a series of additional payments and assistance with energy bills in the coming months, courtesy of the Scottish Government and the Department for Work and Pensions (DWP).
There are four cash payments and one that is paid directly to energy suppliers, all amounting to up to £524.75 in extra support. It's crucial to note that most of these payments won't be disbursed until later this year, but they could be considered now when planning household budgets closer to Christmas - particularly as energy bills typically surge during the colder months due to increased usage.
The Pension Age Winter Fuel Payment has now superseded the Winter Fuel Payment for all Scottish pensioners. This winter, everyone aged 66 and above will receive at least £100 from the Scottish Government, while those on Pension Credit will be entitled to a higher payment of either £203.40 or £305.10, depending on their age.
New applications for Pension Credit submitted before September 22, which subsequently prove successful, will qualify for the higher rates of Pension Age Winter Fuel Payment.
This date is significant as it ensures an automatic payment during the designated payment window; any applications made after this date until mid-December would be paid in arrears, reports the Daily Record.
Winter Fuel Payment U-turn
Last week, Chancellor Rachel Reeves declared that over 9 million pensioners in England and Wales will automatically receive this year's Winter Fuel Payment, following a reversal by the UK Government on its decision to limit the annual heating allowance to pensioners receiving means-tested benefits such as Pension Credit.
Pensioners born before 22 September 1959 will automatically receive payments of £200 if they are aged between 66 and 79, or £300 if they are 80 and over, later this year.
However, pensioners with an annual income exceeding £35,000 will not be eligible for the Winter Fuel Payment. Those above this threshold will need to repay the money either through PAYE or a Self Assessment tax return.
An option to opt-out of the payment has also been announced, although no further details have been confirmed yet.
The impact of this policy reversal on the 1.1 million pensioners in Scotland, where the Pension Age Winter Heating Payment has replaced Winter Fuel Payments, remains uncertain.
Pension Credit
Regarding Pension Credit, nearly 1.4 million older people across Great Britain, including over 125,000 residing in Scotland, are currently receiving this benefit, which could provide an average of £4,300 in additional support during the 2025/26 financial year.
Some older individuals believe that having savings or owning their home makes them ineligible for this means-tested benefit. However, even an award of just £1 per week can unlock other forms of support.
To determine if you're eligible for a Pension Credit claim, you can utilise the Pension Credit calculator on GOV.UK. You'll need to provide details of your:
earnings, benefits and pensions
savings and investments
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Full details on GOV.UK here.
Financial help for pensioner households in 2025
Financial help on the way during 2025/26 includes:
Winter Heating Payment (£59.75) - cash payment issued by the Scottish Government
Pension Age Winter Heating Payment (£100 - £305) - cash payment issued by the Scottish Government
Winter Fuel Payment (£100 - £300) - cash payments issued by DWP to pensioners in England and Wales only
Warm Home Discount (£150) - paid directly from DWP to energy providers and usually added as credit to customer's electricity account
DWP Christmas Bonus (£10) - issued by DWP
Someone aged between 66 and 79, living in Scotland in receipt of Pension Credit, will receive £273.15 from the three cash payments before the end of March 2026. However, most of these will be issued before the end of this year.
This is made up of:
£203.40 from the Pension Age Winter Heating Payment, due to be issued on November 30
£59.75 from the Winter Heating Payment
£10 DWP Christmas Bonus
Someone over 80, living in Scotland in receipt of Pension Credit, will receive £374.86 from the three cash payments before the end of March 2026.
This is made up of:
£305.10 from the Pension Age Winter Heating Payment
£59.75 from the Winter Heating Payment
£10 DWP Christmas Bonus
Winter Heating Payment (£59.75) - Scotland only
Payments were issued in December last year and expected to be around the same time in 2025.
You may qualify for Winter Heating Payment automatically if you get one of these benefits:
Pension Credit
Universal Credit - full guide on eligibility here
Income Support or Income based Jobseeker's Allowance - full guide on eligibility here
Income Related Employment Support Allowance - full guide on eligibility here
Support for Mortgage Interest - full guide on eligibility here
The qualifying week for this year's payment will be in early November, typically the first full week - we will update this article once more details have been released. Find out more on the dedicated pages on MYGOV.SCOT here.
Pension Age Winter Heating Payment - between£100 - £305.10
Every person over State Pension age living in Scotland will automatically receive a one-off heating payment of at least £100 by St Andrew's Day on November 30 - even if they are not in receipt of a means-tested benefit such as Pension Credit.
Those aged between 66 and 79 in receipt of Pension Credit will be paid £203.40
Those aged 80 and over in receipt of Pension Credit will be paid £305.10
To be eligible for the 2025 payment, you must have been born before September 22, 1959.
During the qualifying week - September 15-21 - you must also:
live in Scotland, or an eligible country abroad
get at least one other, specific benefit on at least one day of the qualifying week
Those benefits are:
Pension Credit
Universal Credit
income-related Employment and Support Allowance (ESA)
income-based Jobseeker's Allowance (JSA)
Income Support
Payment rates
Those aged between 66 and 79 in receipt of Pension Credit will be paid £203.40
Those aged 80 and over in receipt of Pension Credit will be paid £305.10
Winter Fuel Payments - between £200 and £300 (not Scotland)
The Department for Work and Pensions (DWP) has confirmed that the 2025/26 Winter Fuel Payment will be issued to everyone born before September 22, 1959.
Payments of £200 will be issued automatically to those aged between 66 and 79, while those aged 80 or over will receive £300. Nobody needs to claim the payment.
Pensioners also need to have an annual income of under £35,000 to qualify for the payment this winter. Details of an option to opt out of the payments will be announced in due course.
Full details on how much people will receive from DWP - depending on their household age and living arrangements - will be published by the DWP on GOV.UK here shortly.
Warm Home Discount - £150 paid to energy provider
The Warm Home Discount Scheme for winter 2025 to 2026 usually opens in October and will give people on certain benefits £150 off their electricity bill.
The money is paid directly by the DWP to energy suppliers between October and March. Eligible households may also be able to get the discount off their gas bill instead - if their supplier provides them with both gas and electricity, just contact them once the scheme opens to find out.
If you're a credit customer the £150 will be added to your electricity account and if you're on Pay As You Go or Prepayment, you'll be sent a voucher that you can use to top-up your meter.
Eligibility rules are changing this year to provide the support to more households - you can read about this here.
We will update this article with details for this winter as soon as they are published. You can read more about the changes to eligibility on GOV.UK here.
DWP Christmas Bonus - £10
The bonus is a one-off, tax-free £10 payment made to people in receipt of State Pension or those claiming certain other benefits during the qualifying week - usually the first full week of December.
Nobody needs to apply for the extra £10 as it should automatically go into the account where you usually receive your State Pension or benefit payment. It is made as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day.
Eligible benefits
Adult Disability Payment
Armed Forces Independence Payment
Attendance Allowance
Carer's Allowance
Carer Support Payment
Child Disability Payment
Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
Disability Living Allowance
Incapacity Benefit at the long-term rate
Industrial Death Benefit (for widows or widowers)
Mobility Supplement
Pension Credit - the guarantee element
Pension Age Disability Payment
Personal Independence Payment (PIP)
State Pension (including Graduated Retirement Benefit)
Severe Disablement Allowance (transitionally protected)
Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
War Disablement Pension at State Pension age
War Widow's Pension
Widowed Mother's Allowance
Widowed Parent's Allowance
Widow's Pension
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