The Winter Fuel Payment deadlines are nearing
The Department for Work and Pensions (DWP) is urging pensioners across the UK to check whether their Winter Fuel Payments could be reclaimed through the tax system, and whether they need to opt out of the payment ahead of winter.
Those looking to opt out of Winter Fuel Payments have only until September to inform the DWP, though the deadline differs depending on how you get in touch. Those who phone to opt out have until September 18, while those who choose to do so online have until September 20 to complete their request.
Winter Fuel Payments are typically issued from November onwards to those who have reached state pension age. The scheme offers a one-off payment of between £100 and £300, though the eligibility rules have changed considerably in recent years.
Up until the 2023/2024 winter period, these payments were provided to everyone in the UK above state pension age. However, for the 2024/2025 winter, the scheme became means-tested with limited eligibility, permitting only people receiving specific benefits such as Pension Credit to claim the payment.
The restricted eligibility sparked widespread backlash, prompting the Government to revise the qualifying criteria once again.
At present, the payment is once more available to all those above state pension age. However, those with an annual income of more than £35,000 will have the payment recouped via their tax contributions.
Income that is included in Winter Fuel Payment calculations:
- State Pension
- Company and personal pensions
- Money you earn from employment
- Interest from savings
- Dividends from company shares
- Income from a trust
- Any state benefits that are taxable
- Net profits if you are self-employed
- Net profits from rental income if you rent out property
Income is assessed on an individual rather than household basis. This means that a retired couple sharing a home with different income levels may find one partner facing a larger tax bill to recoup the payment, while the other remains eligible to keep it.
Higher-earning pensioners can make use of a new HMRC online calculator to determine whether their income is high enough for their Winter Fuel Payments to be clawed back through taxation.
Pensioners with yearly incomes above £35,000 who wish to sidestep an increased tax bill to recover the Winter Fuel Payment have the option of withdrawing from the scheme altogether.
To withdraw from the payments, pensioners must supply their National Insurance number via the online form or by calling the helpline. Once you have opted out, there is no need to do so again the following year, as future payments will not be issued unless you choose to opt back in.
To opt into the Winter Fuel Payments you will need to contact the Winter Fuel Payment Centre before the end of the winter season you are wanting a payment for. For example, if you wish to receive a payment for the 2026/2027 winter period, you must contact the centre by March 31, 2027.
Further information can be found on the Gov.uk website.
