Around two million retirees are facing the possibility of losing their Winter Fuel Payment this year, despite recent adjustments to broaden the qualification requirements. The Winter Fuel Payment, which can amount to up to £300, is distributed to individuals born before September 22, 1959.
If an individual’s annual income surpasses £35,000, they will be obligated to repay the Winter Fuel Payment. Although the payment is initially disbursed, HMRC will retrieve the funds through the taxation system. Typically, the reimbursement is facilitated through adjustments to the individual’s tax code for those under PAYE, while those under self-assessment must report it in their tax return.
The income threshold of £35,000 is based on individual earnings, meaning that one household member may retain their portion of the Winter Fuel Payment while another may need to repay theirs. For instance, if one person earns £40,000 annually and their partner earns £30,000, the higher earner will be required to reimburse their share of the payment.
The deadline to opt out of receiving the Winter Fuel Payment was September 15, 2025. Payments are typically issued in November or December by the Department for Work and Pensions (DWP). Eligible households receive £200, with those including individuals over 80 years old receiving £300. Eligibility is determined by the individual’s age at the end of the qualifying week, which this year falls between September 15 and 21, 2025.
Automatic distribution of the Winter Fuel Payment is done for beneficiaries of certain benefits. Those not receiving these benefits must proactively claim the payment if eligible. Ineligibility criteria include being hospitalized for the entire qualifying week and the preceding year, being incarcerated during the qualifying week, or residing in a care facility from June 23, 2025, onwards while receiving 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.