The Department for Work and Pensions (DWP) has confirmed the final date for pensioners to opt out of receiving the 2025 Winter Fuel Payment.
After a major policy reversal announced in June 2025, the payment will once again be provided to nearly 9 million pensioners in England and Wales, restoring broad eligibility after last year’s restrictive changes.
What Changed with the Winter Fuel Payment?
In 2024, the Winter Fuel Payment was means-tested for the first time. Only pensioners receiving certain state benefits were eligible, and the income threshold was reduced to just £11,600, leaving many out of the scheme.
However, for Winter 2025, the Government has rolled back those cuts. Now:
- Pensioners earning under £35,000 annually will automatically receive £200 or £300, depending on age.
- Those earning over £35,000 will still receive the payment, but it will be recovered by HMRC through PAYE or self-assessment.
Opt-Out Deadline: What You Need to Know
If your income exceeds £35,000 and you do not want to receive the Winter Fuel Payment, you have until September 15, 2025 to notify the Government.
- Opt-out methods: Complete the form on the GOV.UK website or contact the Winter Fuel Payment Centre via post or telephone.
- Income is assessed per individual. For instance, if one partner earns £30,000 and the other £40,000, only the lower-income partner keeps the payment, while the higher earner must repay it.
HMRC Recovery Rules for High-Income Pensioners
According to Katherine Ford, Technical Manager for Tax at ICAEW:
- Pensioners exceeding the £35,000 threshold will have the payment deducted from their 2026/2027 PAYE tax code, or reported in their 2025/2026 self-assessment tax return.
- An online tool is available on the GOV.UK website to help determine if your income surpasses the limit.
Who Will Receive Winter Fuel Payments Automatically?
If you’re over State Pension age and receiving one of the following benefits during the qualifying week (September 15–21, 2025), your payment is automatic:
- State Pension
- Pension Credit
- Universal Credit
- Attendance Allowance
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (income-related)
- War Pensions Scheme awards
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
Who Needs to Make a Claim?
You must apply for the Winter Fuel Payment by post or phone if:
- You’ve never received a Winter Fuel Payment before.
- You’ve deferred your State Pension since your last payment.
- Postal applications open from September 15, 2025.
- Phone applications begin from October 15, 2025.
Payment Amounts and Age Criteria
| Recipient Age | Payment Amount |
|---|---|
| Under 80 | £200 |
| 80 and over | £300 |
Eligibility is based on your age during the qualifying week. However, you may not qualify if:
- You were in hospital receiving free treatment during the entire qualifying week and the year before.
- You were in prison during the qualifying week.
- You lived in a care home since June 23, 2025, and are on Universal Credit or Pension Credit.
Special Note for Scottish Pensioners
If you’re in Scotland, the Winter Fuel Payment has been replaced with the Pension Age Winter Heating Payment, a different scheme administered separately.
The Winter Fuel Payment 2025 is being reinstated more broadly after public outcry over last year’s cuts. If you’re a pensioner earning below £35,000, you’re set to receive your payment automatically.
Those earning more still qualify, but must repay the amount through tax—unless they opt out by September 15. Be sure to verify your eligibility and income to avoid future repayment issues.
FAQs
How do I know if my income is above the £35,000 threshold?
You can use the HMRC’s online tool on GOV.UK to check if your taxable income exceeds £35,000.
Will both partners receive the payment if one earns above the threshold?
No. Each individual is assessed separately. If one earns over £35,000, that person must repay their portion.
What if I miss the opt-out deadline?
If you don’t opt out by September 15, and your income is above the limit, HMRC will automatically recover the payment via tax.