Pensioners are reminded that they have until September 15 to decline the Winter Fuel Payment, which could amount to £300. The payment is being disbursed to pensioners born before September 22, 1959. However, those earning over £35,000 annually will have the payment automatically deducted by HMRC.
The recovery process for the Winter Fuel Payment for individuals earning above the threshold will be facilitated through PAYE or self-assessment return. The income eligibility is calculated per person, meaning if one partner earns £30,000 and the other earns £40,000, only one person would retain the payment while the other would have to repay it.
For individuals surpassing the £35,000 income limit, there is an option to opt out of receiving the Winter Fuel Payment. This can be done by completing a form on the GOV.UK website or by reaching out to the Winter Fuel Payment Centre via post or phone.
The deadline for opting out is September 15, 2025. Failure to opt out for those exceeding the income threshold will result in automatic recovery of the payment by HMRC through the PAYE tax code for the following fiscal year, or inclusion in the tax return for those under self-assessment.
Winter Fuel Payments, overseen by the Department for Work and Pensions (DWP), are automatically provided to individuals claiming specific benefits during the qualifying week. Those not receiving these benefits must apply by post or phone if eligible, with applications opening on September 15 or October 15.
The value of Winter Fuel Payments is £200 for eligible households and £300 for those with a member over 80 years old. Eligibility is determined by age at the end of the qualifying week and certain criteria exclude individuals from receiving the payment.
In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment.
