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Join Which? MoneyWinter Fuel Payment: deadline to opt out if you’ll need to repay
The DWP says around 9 million pensioners will get the payment this winter, but some with higher incomes may need to repay it through tax
Pensioners have until midnight on 15 September to opt out of receiving the Department for Work and Pensions (DWP) Winter Fuel Payment this year.
Most pensioners will once again receive the payment automatically this winter, after the government widened eligibility using a new income threshold. But if your taxable income exceeds £35,000, you’ll need to repay it through tax – unless you choose to opt out.
Here, Which? explains how the new rules work, who can opt out, and what happens if you don’t.
What are the new Winter Fuel Payment rules?
Until 2023, the Winter Fuel Payment was paid universally to almost all pensioners in England and Wales. But for winter 2024-25, it was restricted to those on income-related benefits such as pension credit – narrowing eligibility significantly.
This year, all pensioners over the age of 66 in England and Wales will automatically get the up to £300 Winter Fuel Payment. Although you will pay it back if you have an individual taxable income of more than £35,000 a year. Last year, only those claiming certain benefits received the cash.
The amount you can get has slightly changed from last year, although the maximum is still £300.
If you or your partner receives pension credit, universal credit or income-related employment and support allowance, one person will be paid the whole Winter Fuel Payment for the household.
If you and your partner do not receive one of these benefits, the payment is split between you and the other qualifying people you live with. If you are under the age of 80 you will receive:
- £200 if you do not live with anyone else who qualifies for a payment
- £100 if you live with someone else who qualifies for a payment
If you are 80 years old or older, you will be paid:
- £300 if you do not live with anyone else who qualifies for a payment
- £200 if you live with someone else who is under 80 years old and qualifies for a Winter Fuel Payment themselves
- £150 if you live with someone who qualifies and is also 80 or older
In Northern Ireland, the Executive has confirmed that the Winter Fuel Payment will be reinstated for winter 2025-26, using the same £35,000 income threshold as in England and Wales.
You can’t get a Winter Fuel Payment if you live in Scotland, but you might qualify for the Pension Age Winter Heating payment. There is also a £35,000 threshold for this support.
- Find out more: more pensioners to get the Winter Fuel Payment
What counts as 'taxable income'?
Under the new rules, the £35,000 threshold is for ‘taxable’ income. This is money which comes to you, which you pay tax on. Taxable earnings are not limited to, but can include:
- Earnings from employment or self-employment
- Private pensions
- State pension
- Non-ISA savings interest
Taxable earnings for the Winter Fuel Payment don’t include:
- Savings or investment income within ISAs
- Capital Gains
- The Winter Fuel Payment itself
- Pension Credit, Attendance Allowance, or any other tax-free state benefits
HMRC has set up an online tool to check eligibility and tax status to help with your decision on whether to opt out or not.
- Find out more: will your savings stop you getting the Winter Fuel Payment?
How do you opt out of the Winter Fuel Payment?
If you don’t wish to receive the £200 to £300 Winter Fuel Payment, then you can opt out. This means you won't receive the payment automatically.
You can opt out online, over the phone, or through the post. To do so online, you will need to provide a few personal details, including your full name, National Insurance number, and address.
You can also call the Winter Fuel Payment centre on 0800 731 0160 or write to the Winter Fuel Payment Centre at: Mail Handling Site A, Wolverhampton, WV98 1LR
You will need to opt out by midnight on Monday, 15 September. If you miss the deadline, you will automatically be included in the payment-and-payback cycle.
Pensioners in England, Wales and Northern Ireland use the same online form and contact details above to opt out.
Scottish pensioners will also be able to opt out of the Pension Age Winter Heating Payment, with further details on the process expected from the Scottish government in the autumn.
- Find out more: cold weather payment, winter fuel payment and fuel direct
How does HMRC claw back Winter Fuel Payments?
If you earn over the threshold, HMRC will take back the money through the tax system. How they do it will depend on how you pay tax.
- PAYE: If you usually pay tax through PAYE for your pension or wages, HMRC will adjust your tax code for the 2026-27 tax year. This means you will receive less money each month.
- Self-assessment: The amount paid to you for the Winter Fuel Allowance will be automatically added to your 2025-26 tax return. If you file your tax returns by paper, then you will need to add the payment to it.
According to the tax office, if you have an income of £40,000 and receive the £200 Winter Fuel Payment, and you don’t do self-assessment, then HMRC will take back approximately £17 every month from April 2026 to March 2027 through your tax code.
In the 2027-28 tax year, the monthly deduction will rise to around £33 as the collection will be for both 2026 and 2027. The deduction will return to £17 per month for the 2028-29 tax year.
- Find out more: tax codes and what they mean
Can you opt back in for Winter Fuel Payments?
If your circumstances change or your income fluctuates over the winter months, then you can opt back in for the money after opting out.
To do this, you will once again need to contact the Winter Fuel Payment Centre before March, 31 2026. However, it’s important to note that you will need to repay the money if your income exceeds £35,000 – even by £1. So you should take a look at your finances carefully before making a decision.
- Find out more: over 60s benefits
Payments are automatic – but some need to claim
You will get the payment automatically if you have reached the state pension age by the qualifying week. This year, the qualifying week runs from 15 September until 21 September.
You should receive a letter in October or November telling you how much money you can expect to receive. Although the official payment dates have not been confirmed by the government yet, they are normally paid in November and December.
For the vast majority, there is no need to apply to claim the Winter Fuel Payment. One exception is if you live abroad. In this instance, you will need to claim the payment by post or by phone even if you got it last year.
If living abroad, you can be eligible if:
- You moved to an eligible country before 31 December, 2020
- You have reached state pension age/receive the state pension
- You have a link to the UK – for example, you have family in the UK, or you have lived or worked in the UK
- You get a means-tested benefit from the country you live in which is equivalent to pension credit, universal credit, or one of the other qualifying benefits during the qualifying week
Find out more: help if you're struggling to pay your energy bills
