Pensioners have a deadline until September 15 to choose not to receive the Winter Fuel Payment, which can amount to £300. This payment is being distributed to pensioners born before September 22, 1959. However, if an individual earns more than £35,000 annually, HMRC will automatically recover the Winter Fuel Payment.
The recovery process will be carried out either through PAYE or self-assessment return, with income eligibility determined per person. For instance, if one partner earns £30,000 per year and the other earns £40,000, only one person will retain their Winter Fuel Payment while the other will have to repay it.
Those earning over £35,000 have the choice to opt out of receiving 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 by post or phone. The opt-out option is available after recent reports indicated that DWP state pensioners may receive an additional £352 without any cost.
To verify if HMRC will reclaim your Winter Fuel Payment, you can visit the relevant page on the GOV.UK website. Katherine Ford, ICAEW Technical Manager, Tax, highlighted that pensioners must inform HMRC by September 15, 2025, if their total taxable income exceeds £35,000. Failure to do so will result in automatic recovery of the payment through the tax code for the upcoming year.
Winter Fuel Payments are administered by the Department for Work and Pensions (DWP). If individuals are receiving qualifying benefits during the specified week, they will automatically receive their Winter Fuel Payment. However, those not claiming any qualifying benefits will need to apply by post or phone.
Applications for Winter Fuel Payments can be made by post starting September 15 or by phone from October 15. Eligible households can receive either £200 or £300 if there is someone aged over 80. Eligibility is determined by the recipient’s age at the end of the qualifying week.
Certain circumstances, such as being in hospital, prison, or a care home during specific periods, may affect eligibility. In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment for qualifying individuals.