In a significant shift, the Winter Fuel Payment—usually provided to pensioners over State Pension age—will be given to a broader group this winter, but only those with annual taxable income under £35,000 will keep it.
Those earning more must decide whether to opt out by 15 September 2025, or face automatic repayment via HMRC.
Who Gets the Payment—and Who Pays It Back?
Originally means-tested, this winter’s scheme has been re‑expanded. All pensioners born before 22 September 1959 in England and Wales will receive either £200 (under age 80) or £300 (age 80+) automatically.
However, individuals with income above £35,000 will have their payment clawed back through tax code adjustments or self-assessment processes.
Deadline to Opt Out
If you expect your taxable income to exceed £35,000 for 2025/26, you have until 15 September 2025 to opt out of receiving the Winter Fuel Payment. Doing so prevents HMRC from reclaiming the amount later.
How Repayment Works
- PAYE employees: The payment will be clawed back in small monthly increments via your tax code during 2026/27.
- Self-assessment taxpayers: The full amount will be added to your 2025/26 tax return, payable by the standard deadline.
Other Notable Developments
- Scam Alert: Following this policy announcement, fraudsters have been sending phishing texts demanding personal or bank details to “claim” the Winter Fuel Payment. The DWP confirms they never request such details via text or email.
Summary Table
| Aspect | Details |
|---|---|
| Eligibility Age | Born before 22 September 1959 |
| Payment Amount | £200 (under 80), £300 (80+) |
| Income Threshold | £35,000 taxable income per annum |
| Deadline to Opt Out | 15 September 2025 |
| Repayment Channel | PAYE via tax code (2026/27) or self-assessment return (2025/26) |
| Scam Warning | DWP won’t ask for bank info via text/email |
This winter, many pensioners will benefit from reinstated Winter Fuel Payments, but if your income exceeds £35,000, it’s vital to opt out by 15 September 2025 to avoid automatic clawback.
Keep an eye out for scams mimicking official communications. Stay informed, act promptly, and protect your entitlements.
FAQs
Who qualifies for the Winter Fuel Payment for 2025/26?
If you were born on or before 22 September 1959 and live in England or Wales, you will automatically receive a £200 or £300 Winter Fuel Payment, subject to income rules.
What happens if I earn over £35,000 and don’t opt out?
The payment you receive will be clawed back: through your PAYE tax code in 2026/27 or added to your self-assessment return for 2025/26.
How do I opt out to avoid repayment?
Use the opt-out form on the GOV.UK website or call the Winter Fuel Payment Centre before 15 September 2025 to avoid automatic recovery of the payment.