Around two million retirees are facing the prospect of losing their Winter Fuel Payment this year, despite recent changes aimed at broadening the eligibility requirements. The Winter Fuel Payment, which can amount to £300, is provided to individuals born before September 22, 1959.
However, individuals with an annual income exceeding £35,000 will be required to repay their Winter Fuel Payment. While the payment will be initially disbursed, HMRC will recoup it through the tax system. Typically, the recovery process will occur automatically through PAYE adjustments or inclusion in the tax return for those under self-assessment.
The income threshold of £35,000 is applied per individual, meaning that within a household, one person may retain their share of the Winter Fuel Payment while another must reimburse theirs. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner will need to repay their portion of the payment.
Although it was possible to opt out of receiving the Winter Fuel Payment, the deadline for doing so was September 15, 2025. The Department for Work and Pensions typically distributes these payments in November or December.
The value of Winter Fuel Payments is £200 for eligible households and £300 for households with a member over 80 years old. Eligibility is determined by the recipient’s age at the end of the qualifying week, set for September 15 to 21, 2025, this year.
Automatic Winter Fuel Payments are sent to individuals receiving specific benefits, while those not receiving these benefits must make a claim if they meet certain criteria. Exclusions from eligibility include being hospitalized for free treatment for the full qualifying week and the preceding year, being incarcerated during the qualifying week, or residing in a care home since June 23, 2025, while claiming specific benefits like Universal Credit and Pension Credit.
In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.
