Around two million retirees are expected to forfeit their Winter Fuel Payment this year despite updated eligibility rules. The payment, which can reach £300, is distributed to individuals born before September 22, 1959.
If an individual’s annual income exceeds £35,000, they will be required to repay the Winter Fuel Payment. Although the money is initially issued, HMRC will recoup it through the tax system.
Typically, the repayment is automatically deducted through PAYE by adjusting the tax code. For those utilizing self-assessment, the payment must be declared in the tax return.
The income threshold of £35,000 is based on individual earnings. In cases where multiple individuals reside in the same household, one person may retain their portion of the payment while another may need to reimburse the amount.
The deadline to opt out of receiving the Winter Fuel Payment was September 15, 2025. Payments are usually disbursed in November or December by the Department for Work and Pensions (DWP).
The payment amounts to £200 for eligible households and £300 for those with a member aged over 80. Eligibility is determined by the individual’s age at the end of the qualifying week.
For the current year, the qualifying week spans from September 15 to 21, 2025. Recipients of specific benefits will automatically receive the Winter Fuel Payment, while others must make a claim if certain criteria are met.
In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment.