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Winter Fuel Payment

Volume 454: debated on Monday 4 December 2006

To ask the Secretary of State for Work and Pensions what factors he took into account when deciding (a) the tax treatment of the winter fuel payment and (b) whether the winter fuel payment should be means-tested. (102244)

The winter fuel payment was first introduced in winter 1997-98 at the rate of £20 and has now increased to £200 per household for those aged 60 to 79 and £300 per household for those aged 80 or over.

The objective of the winter fuel payment is to provide pensioners with significant assistance with their bills during the colder winter months. Consequently, it was decided that the payment should be neither taxable nor related to household income. Policy for taxation is of course a matter for my right hon. Friend the Chancellor of the Exchequer.