Millions of people across the UK are set to be affected by changes to the benefits system and other support before the end of the year.
The changes include Winter Fuel Payments worth up to £300, a £150 energy bill discount for eligible households, a major expansion of free school meals and tougher new powers allowing the Department for Work and Pensions (DWP) to recover money it is owed.
Here are the key changes to know about:
Winter Fuel Payment worth up to £300
Older people could receive between £100 and £300 towards their heating costs this winter.
The payment is available to people who were born on or before June 27, 1960 and usually live in England, Wales or Northern Ireland. Those living in Scotland are not eligible for Winter Fuel Payment but may qualify for the separate Pension Age Winter Heating Payment.
Most eligible pensioners will receive the payment automatically.
Letters are due to be sent in October or November, with most payments expected to arrive in November or December 2026.
However, there is an important catch for higher-income pensioners.
If your total income is above £35,000, HMRC will recover the full Winter Fuel Payment through the tax system, unless you opt out this month.
Your partner’s income does not count towards the £35,000 threshold.
£150 Warm Home Discount
Millions of households could also get a £150 discount on their electricity bill through the Warm Home Discount scheme.
The scheme is due to reopen in October 2026 and the money is credited directly to the energy bill rather than being paid into your bank account.
In England and Wales, eligible households generally need to be with a participating energy supplier, receive a qualifying means-tested benefit and have the benefit recipient, their partner or legal representative named on the electricity bill.
Qualifying benefits include Universal Credit, Housing Benefit, income-related Employment and Support Allowance and Pension Credit.
The qualifying date for winter 2026 to 2027 was August 23, 2026, so households needed to meet the relevant conditions on that date for the automatic rebate.
Free school meals expanded
A major change has also arrived for families receiving Universal Credit in England.
From the start of the 2026/27 school year, all pupils in households receiving Universal Credit are eligible for free school meals.
Previously, Universal Credit households generally had to meet an annual household earnings threshold of £7,400.
The expansion means children in households receiving Universal Credit above that threshold can now qualify too.
The Government says more than three million children from Universal Credit families will benefit, with the expansion expected to cover more than half a million additional pupils.
The support could make a significant difference to family budgets, particularly as parents face the cost of school uniforms, childcare and other expenses at the start of the new term.
DWP can recover debts directly from bank accounts
The DWP now has sweeping new powers to recover certain benefit debts.
Under the Public Authorities (Fraud, Error and Recovery) Act 2025, the department can, as a last resort, recover money owed from a person’s bank account using a Direct Deduction Order.
The powers can apply to bank, building society and credit union accounts, and safeguards are in place to assess whether deductions are affordable. Joint accounts can also be considered, although the DWP says sole accounts must be considered first.
The new powers are aimed at people who owe money to the DWP and have failed to agree an appropriate repayment arrangement.
The department has said thousands of people with outstanding debts are being contacted and warned to get in touch.
Some benefit debtors could face a driving ban
The changes also mean persistent benefit debtors could ultimately face a driving ban.
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The DWP can apply to a court to temporarily disqualify someone from holding a driving licence in the most serious cases where the person has the means to repay but has persistently failed to do so without good reason.
A driving ban can only be considered where at least £1,000 remains outstanding.
There are also protections for people who have an essential need for their licence, such as those whose work depends on driving or people with caring responsibilities.
Any ban is initially suspended while the person keeps to the agreed repayment terms.
The DWP has warned debtors to “get in touch and pay up, or face the consequences.”
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