The Department for Work and Pensions (DWP) has issued a fresh alert
Millions of pensioners are being urged to review their finances without delay or risk facing an unexpected tax bill, following a fresh warning issued by the Government.
The DWP has reminded pensioners born on or before September 22, 1960, that anybody earning more than £35,000 will have the payment recouped via the tax system — meaning the money could arrive in their bank account only to be clawed back at a later date by HMRC. Officials have warned that those who would prefer not to receive the payment altogether must take action ahead of a series of deadlines in September.
Anyone wishing to opt out must either:
- Complete the official online opt-out form by 11.59pm on September 20, 2026; or.
- Call the Winter Fuel Payment helpline by 6pm on September 18, 2026.
Pensioners will need their National Insurance number to hand when making the request. The DWP has emphasised that people cannot simply return the money themselves once it has been deposited. Instead, HMRC will recover it automatically through the tax system from those whose annual income surpasses £35,000.
The opt-out decision is also intended to carry forward beyond this winter. Any pensioner who chooses to forgo the payment will remain automatically opted out in subsequent years, unless they contact the Winter Fuel Payment Centre to opt back in.
Those who wish to resume receiving the payment must inform the DWP by March 31, 2027, in order to be included for the 2026-27 winter payment. The department is additionally cautioning pensioners to report any change in their circumstances as promptly as possible.
Any change in circumstances, such as moving home, entering a care home or anything else that might impact entitlement, should be reported without delay. Officials have cautioned that failure to provide accurate information could result in recipients being required to repay sums if they have been overpaid. The latest reminder comes in the wake of one of Labour’s most contentious policy U-turns.
In July 2024, Chancellor Rachel Reeves limited Winter Fuel Payments to pensioners in receipt of Pension Credit or certain other means-tested benefits, characterising the decision as a “tough choice” necessary to help restore the public finances.
The move triggered intense political controversy, with charities warning that millions of elderly people would be forced to choose between heating their homes and buying food throughout the winter months. Labour MPs also expressed concern that many low-income pensioners were losing out because they qualified for Pension Credit but had never applied for it.
Under growing pressure, the Government performed a U-turn in June 2025, announcing that Winter Fuel Payments would be restored to all pensioners above State Pension age in England and Wales, with no requirement to claim a qualifying benefit.
The reinstated scheme, however, came with a fresh caveat. Pensioners with annual incomes exceeding £35,000 would still receive the payment in the first instance, but HMRC would subsequently claw back the full amount via the tax system.
Campaigners have maintained that the arrangement risks causing confusion among many elderly people, who may be unaware that the payment could ultimately add to their tax liability. As the September deadlines draw ever closer, the DWP is encouraging anyone who thinks they could be affected to review their circumstances now, rather than face an unwelcome shock later in the year.
Pensioners seeking further details can get in touch with the Winter Fuel Payment Centre on 0800 731 0160, available between 8am and 6pm, Monday to Friday, make use of the Relay UK service, or write to the Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.
