Andy Burnham £35,000 state pension rule if he becomes Prime Minister

Andy Burnham will arrive in Downing Street to find a £35,000 pension rule already in place governing Winter Fuel Payments. The former Greater Manchester Mayor is likely to take over as Prime Minister as soon as 20 July.

The £35,000 rule relates to Winter Fuel Payments paid to pensioners every year to help older people warm their homes during the colder months. The winter allowance is worth either £200 or £300 depending on age and is now linked to income. Anybody with incomes over £35,000 does not get to keep the winter allowance. These households are judged to be financially comfortable enough to manage without the extra support.

It is likely existing qualifying rules for Winter Fuel Payments will be kept in place under PM-in-waiting Andy Burnham. The rules were put in place by Keir Starmer and Rachel Reeves following a backlash over deeper cuts to the winter allowance. The policy aims to cover all low-income pensioners who require help without giving away cash to those who do not need it.

Winter Fuel Payments usually drop into bank accounts each November. All pensioners are initially paid the allowance, but those on incomes over £35,000 do not get to keep it. The cash will be taken back in instalments from pension payments over the following year.

The new MP for Makerfield has been urged to introduce drastic changes when he becomes Prime Minister, including an affordable energy guarantee and cheap bus fares. A Labour Party source close to Burnham said his speech made clear he would not be pitching business as usual. His instincts are economically interventionist and he will act with radicalism to boost growth and living standards.