Around two million retirees are expected to forfeit their Winter Fuel Payment this year despite recent changes aimed at broadening the eligibility requirements. The Winter Fuel Payment, which can reach £300, is disbursed to individuals born before September 22, 1959.
However, recipients with an annual income exceeding £35,000 will be required to repay the Winter Fuel Payment. Although the funds will initially be distributed, HMRC will recoup the amount through the tax system.
Typically, the Winter Fuel Payment will be recouped automatically via PAYE by adjusting your tax code. For those utilizing self-assessment, the payment must be declared in the tax return.
The income threshold of £35,000 is based on individual earnings, meaning that one person in a household may retain their share of the payment while another might have to reimburse theirs. For instance, if one individual earns £40,000 annually and their partner earns £30,000, the higher earner will need to repay their portion of the payment.
Although it was possible to opt out of receiving the Winter Fuel Payment, the deadline for this was September 15, 2025. The Department for Work and Pensions (DWP) typically distributes Winter Fuel Payments in November or December.
These payments amount to £200 for eligible households and £300 for households with a member aged over 80. Eligibility is determined by the recipient’s age at the end of the qualifying week, which for this year is September 15 to 21, 2025.
If an individual receives certain benefits, the Winter Fuel Payment will be sent automatically. Otherwise, they must make a claim if specific conditions apply.
In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment.
