Pensioners have a deadline of September 15 to choose not to receive the Winter Fuel Payment, which can be up to £300. The payment is being given to pensioners born before September 22, 1959. However, if a pensioner’s annual income exceeds £35,000, HMRC will automatically reclaim the Winter Fuel Payment.
The recovery process will be conducted through PAYE or self-assessment return, with income eligibility assessed per individual. For instance, if one partner earns £30,000 per year and the other partner earns £40,000, one partner will retain their share of the Winter Fuel Payment while the other partner will have to repay it.
If an individual’s income surpasses £35,000, there is an option to opt out of receiving the Winter Fuel Payment. This can be done by completing a form on GOV.UK or by reaching out to the Winter Fuel Payment Centre via post or phone.
To determine if HMRC will reclaim your Winter Fuel Payment, you can visit the GOV.UK page for verification. Katherine Ford, ICAEW Technical Manager, Tax, emphasized that pensioners must inform HMRC by September 15, 2025, if their total income for tax purposes exceeds £35,000 to opt out of the Winter Fuel Payments. If not, the payment will be automatically recouped through the individual’s pay as you earn tax code for 2026/2027 unless they are under self-assessment, in which case HMRC will add it to their tax return for 2025/2026.
Winter Fuel Payments are distributed by the Department for Work and Pensions (DWP) to qualifying individuals, with automatic payments for those claiming specific benefits during the qualifying week. Individuals not receiving these benefits must apply by post or phone if they meet certain criteria. Applications can be submitted by post from September 15 or by phone from October 15. Eligible households can receive £200 or £300 if someone is over 80.
Eligibility for the Winter Fuel Payment is based on the individual’s age by the end of the qualifying week, with exclusions for those in hospital, prison, or care homes during specific periods. In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment.
