Around two million retirees are expected to forfeit their Winter Fuel Payment this year despite recent adjustments to broaden the eligibility requirements. The Winter Fuel Payment, which can amount to £300, is disbursed to individuals born before September 22, 1959.
However, if an individual’s annual income surpasses £35,000, they will be required to repay the Winter Fuel Payment. Although the payment is initially issued to the recipient, HMRC will reclaim the amount through the taxation system.
Typically, the Winter Fuel Payment will be recouped automatically via PAYE, with adjustments made to the tax code. For those who file self-assessment tax returns, the payment must be declared accordingly.
The £35,000 income threshold pertains to individual earnings, indicating that within a household, one person may retain their portion of the Winter Fuel Payment while another individual may need to reimburse theirs. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner would be responsible for repaying their share of the payment.
The deadline to opt out of receiving the Winter Fuel Payment was September 15, 2025. Payments are typically distributed in November or December by the Department for Work and Pensions (DWP) and are valued at £200 for eligible households, increasing to £300 for households with individuals over 80 years old.
To automatically receive the Winter Fuel Payment, individuals must be eligible based on their age at the end of the qualifying week, which this year spans from September 15 to 21, 2025. Those receiving specific benefits will receive the payment automatically, while others must make a claim if certain criteria are met.
In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.