Pensioners have the opportunity to choose whether to receive the Winter Fuel Payment, valued at up to £300, until September 15.
The Winter Fuel Payment is being distributed this year to pensioners born before September 22, 1959. However, individuals earning more than £35,000 annually will have the payment automatically deducted by HMRC.
The income criteria are assessed per person. For instance, if one partner earns £30,000 while the other earns £40,000, one person will keep their share of the Winter Fuel Payment, while the other will repay it.
If your income exceeds £35,000, you have the option to decline the Winter Fuel Payment. This can be done by submitting a form on GOV.UK or by reaching out to the Winter Fuel Payment Centre via mail or phone.
It has been reported that DWP state pensioners are set to receive an extra £352 for free.
HMRC will claw back the Winter Fuel Payment from individuals with incomes over £35,000 through PAYE or self-assessment if they fail to opt out by September 15, 2025.
Winter Fuel Payments are administered by the Department for Work and Pensions (DWP). Individuals eligible for certain benefits during the qualifying week will automatically receive the payment.
For those not automatically eligible, claims can be made by post starting September 15 or by phone from October 15. Eligible households can receive £200, or £300 if there is someone over 80 in the household.
Eligibility is determined by age at the end of the qualifying week. Exclusions include being in hospital for the entire qualifying week and the previous year, being in prison during the qualifying week, or residing in a care home from June 23, 2025, onwards while claiming specific benefits.
In Scotland, the Winter Fuel Payment has been replaced with the Pension Age Winter Heating Payment.