Around two million retirees are expected to forfeit their Winter Fuel Payment this year despite recent changes aimed at broadening the eligibility requirements. Winter Fuel Payments, which can reach up to £300, are distributed to individuals born before September 22, 1959.
If an individual’s annual income exceeds £35,000, they will be required to repay the Winter Fuel Payment. Although the payment is initially disbursed, HMRC will reclaim it through the tax system. Typically, the repayment is automatically deducted through PAYE by adjusting the tax code. For those who file self-assessment, the payment must be reported in the tax return.
The income threshold of £35,000 is assessed on an individual basis. This means that one person within a household may retain their portion of the Winter Fuel Payment while another may need to repay theirs. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner would repay their share while the lower earner keeps theirs.
The deadline to opt-out of receiving the Winter Fuel Payment was September 15, 2025. Payments, typically £200 for eligible households and £300 for households with a member over 80, are disbursed in November or December by the Department for Work and Pensions (DWP). Eligibility is determined by the recipient’s age at the end of the qualifying week.
The qualifying week for this year is from September 15 to 21, 2025. Those receiving specific benefits will automatically receive the Winter Fuel Payment, while others need to make a claim if they meet certain criteria. Exclusions include individuals receiving certain medical treatments, being in prison during the qualifying week, or residing in a care home for an extended period.
In Scotland, the Winter Fuel Payment has been replaced with a new Pension Age Winter Heating Payment.