Around two million retirees are facing the prospect of losing their Winter Fuel Payment this year, even with the recent adjustments made to broaden the eligibility requirements. The Winter Fuel Payment, which can reach up to £300, is typically disbursed to individuals born before September 22, 1959.
However, if an individual’s income exceeds £35,000 annually, they will be required to repay the Winter Fuel Payment. Although the payment will initially be issued, HMRC will recoup the amount through the taxation system. In most cases, the repayment will be automatically deducted via PAYE by adjusting the individual’s tax code. Those utilizing self-assessment will need to include the payment in their tax return.
The £35,000 income threshold is based on individual earnings, meaning that one member of a household might retain their share of the Winter Fuel Payment while another member may need to reimburse their portion. For instance, if one partner earns £40,000 per year and the other earns £30,000, the higher earner will need to return their share of the payment.
While there was an opportunity to opt out of receiving the Winter Fuel Payment, the deadline for this was September 15, 2025. The Department for Work and Pensions (DWP) typically distributes the payments of £200 to eligible households, with an increased amount of £300 for households containing individuals over 80 years old. Eligibility is determined based on the recipient’s age at the end of the qualifying week, which this year spans from September 15 to 21, 2025.
Individuals receiving certain benefits will automatically receive the Winter Fuel Payment. However, those not receiving these benefits must make a claim if specific conditions are met. Ineligible circumstances include being hospitalized for the entire qualifying week and the preceding year, being incarcerated during the qualifying week, or residing in a care facility 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.