Around two million retirees are expected to forfeit their Winter Fuel Payment this year despite the expansion of eligibility rules. The payment, valued at up to £300, is typically disbursed to individuals born before September 22, 1959.
If an individual’s annual income surpasses £35,000, they will be required to repay the Winter Fuel Payment. Although the money will initially be received, HMRC will recoup it through the taxation system.
In most instances, the Winter Fuel Payment will be automatically deducted via PAYE by adjusting the tax code. For those utilizing self-assessment, it must be declared in the tax return.
The eligibility threshold of £35,000 is based on individual income, potentially resulting in one household member retaining their payment while another must reimburse theirs. For instance, if one person earns £40,000 annually and their partner earns £30,000, the higher earner would repay their share of the payment.
The deadline to opt-out of receiving the Winter Fuel Payment was September 15, 2025. These payments, distributed by the Department for Work and Pensions (DWP), are typically dispatched in November or December.
The Winter Fuel Payment amounts to £200 for qualifying households, increasing to £300 for households with individuals aged over 80. Eligibility is determined by the recipient’s age at the conclusion of the qualifying week.
The qualifying week for this year spans from September 15 to 21, 2025. Individuals automatically qualify for the Winter Fuel Payment if they receive certain benefits. If not in receipt of these benefits, one must make a claim based on specific criteria.
Exclusions from eligibility include prolonged hospitalization or imprisonment during the qualifying period, as well as continuous residency in a care facility. In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment.
