Pensioners have a deadline until September 15 to choose not to receive the Winter Fuel Payment, which can amount to a maximum of £300.
The Winter Fuel Payment is being distributed this year to retirees born before September 22, 1959. However, if an individual earns more than £35,000 annually, HMRC will automatically reclaim their Winter Fuel Payment.
The recovery process will occur either through PAYE or via a self-assessment return. Income eligibility is assessed per person. For instance, if one partner earns £30,000 while the other earns £40,000, one person will retain their Winter Fuel Payment share, and the other will need to repay it.
Individuals earning over £35,000 have the option to decline the Winter Fuel Payment. This can be done by completing a form on the GOV.UK website or by reaching out to the Winter Fuel Payment Centre via mail or phone.
To determine if HMRC will claw back your Winter Fuel Payment, you can visit the relevant GOV.UK webpage. Katherine Ford, ICAEW Technical Manager, Tax, emphasized that pensioners must notify HMRC by September 15, 2025, if their total income for tax purposes exceeds £35,000.
Winter Fuel Payments are administered by the Department for Work and Pensions (DWP). If you are receiving qualifying benefits during the stipulated week (September 15 to 21, 2025, this year), you will automatically receive the Winter Fuel Payment. Benefits that make you eligible for the payment include:
Two groups must submit a claim by post or phone. If you do not receive any of these benefits, you will need to claim your Winter Fuel Payment if certain conditions apply.
If required to claim, applications can be made by post starting from September 15 or by phone from October 15. Eligible households will receive £200, while those with someone aged over 80 will receive £300.
Eligibility is determined by your age at the end of the qualifying week. Ineligibility criteria include being hospitalized for free treatment throughout the qualifying week and the preceding year or being in prison during the qualifying week.
Moreover, living in a care home continuously from June 23, 2025, or earlier while claiming specific benefits like Universal Credit and Pension Credit renders you ineligible. In Scotland, the Winter Fuel Payment has been substituted with a new Pension Age Winter Heating Payment.
