Shock as millions of pounds of winter fuel allowance paid to people in EU

Millions of pounds in Winter Fuel Allowance (WFA) has been paid out to people living outside the UK, it has emerged.

In the year 2023/24 there were 34,307 of the payments made to people across the EU, including in Italy, Romania, Croatia and Bulgaria.

There were 25 payouts in Croatia, eight in Iceland and an unspecified “low” number in Liechtenstein. Despite not being in the EU, claimants also received payments in Switzerland.

The shock revelation follows the backlash over the controversial scrapping of WFA to all pensioners, which was one of the first major decisions by new Chancellor Rachel Reeves, who is set to reveal her full new budget next week.

WFA payments varied from £100 to £300 per person in the financial year in question.

Based on an average of £150 it would mean that £5.14 million was paid out.

The bulk was to the Republic of Ireland which had 26,226 recipients, followed by Germany, with 2,185 and Italy with 1,632.

The shock figures were revealed in an official government response to a written Parliamentary question from Sir John Hayes, the Tory MP for South Holland and the Deepings.

He had asked for details of: “How many people eligible for Winter Fuel Payments live overseas, broken down by country.”

Emma Reynolds, Parliamentary Under-Secretary in the Department for Work and Pensions, provided a table of claimants in response.

Her response showed that claimants could include EU nationals who have previously worked in the UK. The allowance will still be available to eligible people in the EU after Rachel Reeves’ changes.

She added: “For winter 2024/25, to be paid Winter Fuel Payments abroad, customers must be in scope of the Withdrawal Agreement and equivalent agreements with the EEA-European Free Trade Association (EFTA) states and Switzerland, and the 2019 Convention with Ireland.

“Customers must also be in receipt of a benefit equivalent to Pension Credit or another qualifying benefit and be able to show that they have a Genuine and Sufficient Link to the UK.

“A Genuine and Sufficient Link to the UK can include having lived or worked in the UK and having family in the UK. Statistics for winter 2024/25 do not yet have a confirmed date for release.”