Around two million retirees are projected to lose their Winter Fuel Payment this year despite changes in eligibility rules. The payment, which can amount to £300, is typically available to individuals born before September 22, 1959.
However, individuals with an annual income exceeding £35,000 will be required to repay the Winter Fuel Payment. Although the payment will be initially issued, HMRC will recoup it through the tax system.
In most instances, the repayment will be automatically deducted via PAYE by adjusting the tax code. For those using self-assessment, the payment must be declared in their tax return.
The income threshold of £35,000 is based on individual earnings. Therefore, within a household, one person may retain their payment while another may have to refund theirs based on individual incomes.
While there was an option to opt out of receiving the Winter Fuel Payment, the deadline for this was September 15, 2025. Payments are typically disbursed in November or December by the Department for Work and Pensions (DWP).
The payment value is £200 for eligible households, rising to £300 for households with a member aged over 80. Eligibility is determined by the recipient’s age during the qualifying week, set from September 15 to 21, 2025.
Recipients of specific benefits receive the Winter Fuel Payment automatically; however, those not on these benefits must make a claim if they meet certain criteria. Exclusions include being hospitalized for the entire qualifying week, being incarcerated during the week, or residing in a care facility since June 23, 2025, and claiming specific benefits.
In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.