Approximately two million retirees are expected to lose their Winter Fuel Payment this year, despite recent changes aimed at broadening the eligibility requirements. The Winter Fuel Payment, valued at up to £300, is distributed to individuals born before September 22, 1959.
However, individuals with an annual income exceeding £35,000 will be required to refund their Winter Fuel Payment. While the payment is initially disbursed, HMRC will recoup it through the tax system. In most instances, repayment will be automatically deducted via PAYE by adjusting the tax code. For those using self-assessment, the payment must be declared in the tax return.
The £35,000 income threshold is calculated on an individual basis, meaning one person in a household may retain their share of the payment while another may need to repay theirs. For example, if one partner earns £40,000 annually and the other earns £30,000, the higher earner will have to refund their portion of the Winter Fuel Payment.
The deadline to opt out of receiving the Winter Fuel Payment was September 15, 2025. Payments are typically issued in November or December by the Department for Work and Pensions (DWP) and amount to £200 for eligible households, rising to £300 for households with a member aged over 80. Eligibility is determined by age at the end of the qualifying week, set this year from September 15 to 21, 2025.
Automatic payment is guaranteed for recipients of specific benefits, while others must make a claim if they do not receive these benefits. Ineligibility applies to individuals receiving free hospital treatment or serving a prison sentence during the qualifying week, as well as residents in care homes from June 23, 2025, onwards who claim certain benefits such as Universal Credit and Pension Credit.
In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.