Around two million retirees are anticipated to lose their Winter Fuel Payment this year despite recent adjustments to the eligibility requirements. The Winter Fuel Payment, which can reach up to £300, is granted to individuals born before September 22, 1959.
Nevertheless, if an individual’s annual income surpasses £35,000, they will need to reimburse the Winter Fuel Payment. Although the payment will initially be disbursed, HMRC will recoup it via the taxation system.
Typically, the Winter Fuel Payment will be automatically recouped through PAYE by modifying your tax code. For those utilizing self-assessment, it must be declared in their 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 Winter Fuel Payment while another may have to repay theirs. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner would need to repay their portion of the Winter Fuel Payment while the lower earner would retain theirs.
Opting out of receiving the Winter Fuel Payment was an option until September 15, 2025. The Department for Work and Pensions (DWP) typically sends out Winter Fuel Payments in November or December.
Eligible households receive £200, while those with a member aged over 80 receive £300. Eligibility is determined by age at the end of the qualifying week, set from September 15 to 21, 2025, this year.
Automatic disbursement of the Winter Fuel Payment occurs if certain benefits are received; otherwise, individuals must make a claim if they meet specific criteria. Ineligibility applies if one was hospitalized during the entire qualifying week, incarcerated during that week and the preceding year, or residing in a care facility since June 23, 2025, and receiving specified benefits.
In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment.