Around two million retirees are facing a loss of their Winter Fuel Payment this year despite recent changes to broaden the eligibility requirements. The Winter Fuel Payment, which can amount to £300, is distributed to individuals born before September 22, 1959.
Individuals with an annual income exceeding £35,000 will be required to reimburse their Winter Fuel Payment. Although the payment will initially be disbursed, HMRC will recoup it through the taxation system. Typically, the repayment is deducted automatically via PAYE by adjusting the tax code. For those who file self-assessment tax returns, the payment must be declared accordingly.
The income threshold of £35,000 is determined per person, meaning that one household member may retain their share of the Winter Fuel Payment while another may need to repay it. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner will have to refund their portion of the payment.
Opting out of receiving the Winter Fuel Payment was possible until the deadline of September 15, 2025. Payments are typically issued in November or December by the Department for Work and Pensions (DWP). Eligible households receive £200, with an increased amount of £300 for households with a member aged over 80, based on the individual’s age by the end of the qualifying week.
The qualifying week for this year is set from September 15 to 21, 2025. Automatic Winter Fuel Payment distribution is facilitated for recipients of specific benefits. Otherwise, individuals must actively claim the payment if eligible. Exclusions apply to those receiving hospital care, serving prison sentences, or residing in care homes under certain benefit schemes.
In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment.