Around two million retirees are poised to forfeit their Winter Fuel Payment this year, despite recent changes aimed at broadening the eligibility requirements. The Winter Fuel Payment, which can amount to £300, is granted to individuals born before September 22, 1959.
However, if an individual’s income surpasses £35,000 annually, they will be required to reimburse the Winter Fuel Payment. While the funds are initially distributed, the HMRC will recoup the sum through the tax system. Typically, the repayment is automated through PAYE adjustments or must be declared in self-assessment tax returns.
The income threshold of £35,000 is determined per individual, meaning one household member may retain their payment while another must return it. For instance, if one person earns £40,000 and their partner earns £30,000, the higher earner will need to repay their portion of the payment.
Opting out of receiving the Winter Fuel Payment was possible until the September 15 deadline in 2025. These payments, usually disbursed between November and December by the Department for Work and Pensions (DWP), total £200 for eligible households and £300 for those with a member aged over 80. Eligibility is based on the recipient’s age at the end of the qualifying week, set as September 15 to 21, 2025, this year.
Recipients of specific benefits will automatically receive the Winter Fuel Payment, while others must make a claim if they do not receive these benefits. Ineligibility applies to individuals receiving free hospital treatment for the entire qualifying week and the previous year, or if they were incarcerated during that period. Additionally, residing in a care home since June 23, 2025, or earlier while claiming certain benefits like Universal Credit and Pension Credit renders one ineligible.
In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.
