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 typically disbursed to individuals born before September 22, 1959.
However, individuals with an annual income exceeding £35,000 will be obligated to reimburse their Winter Fuel Payment. While the payment will initially be issued, HM Revenue and Customs (HMRC) will recoup the amount through the taxation system. In most instances, the repayment will be automatically deducted via Pay As You Earn (PAYE) by adjusting your tax code. If you are self-assessed for tax, you will need to declare it in your tax return.
The income threshold of £35,000 is determined on an individual basis, meaning that one person in a household may retain their share of the Winter Fuel Payment while another individual may need to repay it. For instance, if one partner earns £40,000 annually and the other earns £30,000, the higher earner would need to reimburse their portion of the Winter Fuel Payment.
Although there was an option 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 disburses Winter Fuel Payments in November or December. The payment amounts to £200 for eligible households and £300 for households with a member aged over 80, based on the age of the individual by the end of the qualifying week.
For this year, the qualifying week is September 15 to 21, 2025. Individuals receiving certain benefits will automatically receive the Winter Fuel Payment, while those not receiving these benefits will need to make a claim if eligible. Certain circumstances, such as being in hospital for the entire qualifying week or residing in a care home since June 23, 2025, may affect eligibility.
In Scotland, the Winter Fuel Payment has been replaced with the Pension Age Winter Heating Payment.