HMRC says the Winter Fuel Payment is designed to help many people to cover part of their heating bills for winter 2026
HMRC officials have released a fresh update that affects many people who get the Winter Fuel Payment. The payment means that if you were born on or before 27 June 1960, you may be entitled to between £100 and £300 to assist with your heating costs for winter 2026 to 2027.
The majority of eligible people receive the Winter Fuel Payment automatically and are sent a letter in October or November confirming the amount they will receive. Payment is typically made in November or December 2026 – however, approximately 2 million people are required to repay it.
If your total income exceeds £35,000, HMRC will reclaim your Winter Fuel Payment. Your partner’s income is not included in your total.
It should be noted that if you reside in Scotland, you are not eligible for a Winter Fuel Payment, though you may qualify for Pension Age Winter Heating payment. In 2025/26, approximately 10.2 million people were expected to benefit from the Winter Fuel Payment or PAWHP schemes. Around 12.3 million people in the UK were projected to receive payments, with roughly 2.2 million forecast to have incomes exceeding £35,000, meaning any payment would be withdrawn through the Winter Fuel Payments Charge.
This week, HMRC released a fresh update containing information for those who may need to repay it. The update included two deadlines – one this month and another at the beginning of the year.
The agency said: “Customers who received the Winter Fuel Payment, or Pension Age Winter Heating Payments in Scotland, and are in Self Assessment, will see the Winter Fuel Payment pre-populated in their 2025 to 2026 online tax return where possible, payment is due by 31 January 2027. Customers should check and add it manually if it is not shown. Paper filers will need to add it on their tax return, due by 31 October 2026.
“Customers with a total income over £35,000 will then pay the payment back through their Self Assessment tax bill. You can choose to opt out of the Winter Fuel Payment by 23:59 on 20 September 2026. Customers in Scotland can opt out of the Pension Age Winter Heating Payment by midday on 19 October 2026.”
Before winter 2024/25, the payments had been distributed universally to everyone of State Pension age. In July 2024, the newly-elected Labour administration under Sir Keir Starmer announced that pensioners in England and Wales would no longer qualify unless they were in receipt of Pension Credit or certain other means-tested benefits, cutting the share of eligible pensioners to approximately 13%.
Scotland and Northern Ireland subsequently adopted the same approach. Opposition parties and numerous campaign groups condemned this means-testing strategy.
In June 2025, ministers revealed that from winter 2025/26 onwards everyone above State Pension age would once more be entitled to the Winter Fuel Payment, but those with annual incomes above £35,000 would be required to repay it via the tax system – the Winter Fuel Payments Charge.
This means that over three quarters of pensioners are set to benefit, official information says, adding that devolved administrations in Northern Ireland and Scotland have adopted this approach. According to the House of Commons Library, if an individual’s taxable income exceeds £35,000 for the relevant tax year, and they are not simultaneously receiving a means-tested benefit, HM Revenue and Customs (HMRC) will recover their Winter Fuel Payment (or PAWHP) through the tax system.
The Winter Fuel Payments Charge rules
This Winter Fuel Payments Charge is applicable throughout the UK. The charge is levied on individuals, not households. Consequently, where only one partner in a couple has taxable income above £35,000, solely that partner’s portion will be recovered. The other partner will retain their payment.
The charge is implemented either through an adjustment to pay as you earn (PAYE) tax codes, or by including the amount on self assessment tax returns. People can verify on gov.uk whether their income surpasses the threshold and how HMRC will reclaim it.
People can choose not to receive the Winter Fuel Payment or PAWHP if they prefer not to. Once someone has opted out, they will not receive payments in subsequent years unless they opt back in.
The fresh communication from HMRC arrived as it notified people of an update to the Self Assessments system. HM Revenue and Customs (HMRC) has introduced an enhanced registration service making it simpler than ever to register for Self Assessment, it says.
Anyone uncertain whether they need to submit a tax return can use HMRC’s free online checking tool on GOV.UK to determine what, if anything, they should do next. More than 640,000 customers registered for Self Assessment in the 12 months to 31 March 2026.
The deadline for submitting a tax return and paying any tax owed for the 2025 to 2026 tax year is 31 January 2027. However, those with income to declare who are not yet registered for Self Assessment must do so before they can begin their tax return.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Anyone new to Self Assessment may not realise they need to register before they can submit their tax return. Registering is quicker and easier than ever. And if you register now, you’ll get your Unique Taxpayer Reference so you can start completing your return with plenty of time before the 31 January deadline.”
HMRC officials say changes to their online registration system mean that those new to Self Assessment will be able to sign up quickly and straightforwardly through their Personal Tax Account, thanks to what they say is a more simplified process. For more on the Winter Fuel Payment, visit the gov.uk web page.
