Opt-out deadline for Winter Fuel Payment has passed — what pensioners need to know

The deadline to opt out of the Winter Fuel Payment for 2025/26 has passed, and payments will be made automatically to eligible households before any ineligible awards are recovered, the Government has confirmed.

Pensioners who did not opt out by midnight on Monday, Sept. 15 will receive the one-off payment — worth £200 per household or £300 if someone in the household is over 80 — and HM Revenue & Customs (HMRC) will claw back all or part of that payment from households where a person over state pension age has taxable income of £35,000 or more.

The rule change follows a policy reversal earlier this year after plans to restrict the benefit were met with public opposition. Officials have said the payment will be issued automatically and then recovered from any household later found to be ineligible under the new income threshold.

Those who missed the opt-out deadline do not have a way to prevent the payment being issued this winter, but they will be able to opt out for the 2026/27 payment when the opt-out window opens next April. Households that did opt out but later discover they were eligible may opt back in and still receive the 2025/26 payment by contacting the Winter Fuel Payment Centre no later than March 31, 2026.

Tax expert Heather Rogers, founder of Aston Accountancy, said HMRC will recover ineligible payments in one of three ways depending on the recipient’s tax circumstances. "It will either send a simple calculation and deduct it from your tax code, or if you don't have any income subject to PAYE it will send a bill," she said. "If you fill in a self-assessment tax return then you can pay back the WFP with your tax. HMRC has said no one will have to register for self-assessment if their WFP has to be clawed back."

Taxable income is calculated on a gross basis before deducting personal or tax-free allowances. That means recipients should total pensions and all other taxable income, without subtracting allowances, to determine whether they meet the £35,000 threshold. Where a couple share a household and one partner’s taxable income exceeds the threshold, only that partner’s half of the payment will be recovered — £100 of a £200 household payment, or £150 of a £300 payment when an eligible resident is over 80.

Pensions columnist Steve Webb noted concerns about whether HMRC would seek repayment from estates when a recipient dies after receiving a payment but before recovery can take place. He said the Government has indicated it will not pursue the debt if the Winter Fuel Payment is the only outstanding tax liability, but if it forms part of a broader income tax debt it will be included with other amounts owed.

Officials have warned of a rise in scams following publicity around the payments. Recipients should ignore unsolicited text messages or calls purporting to be from the Department for Work and Pensions or HMRC asking for personal or banking information. The Department for Work and Pensions does not require people to apply for the Winter Fuel Payment this year for those who meet the qualifying conditions, and genuine communications will not request passwords or full bank details.

Around nine million pensioners — more than three-quarters of those living in England and Wales — are expected to receive the payment this year. An estimated two million people in England and Wales over state pension age with taxable incomes above £35,000 will have their payments recovered unless they opted out before the deadline. Different arrangements apply in Scotland, which operates a separate Winter Heating Payment, and in Northern Ireland.

The Government has said the payments aim to help older households with heating costs and reduce health risks associated with cold homes, particularly for older people. Health services and charities have long flagged that colder indoor temperatures can increase the risk of respiratory and cardiovascular problems in older populations.

Households unsure of their status or wishing to query recovery methods are advised to contact HMRC or the Winter Fuel Payment Centre for guidance. Pensioners with questions about their entitlement or the interaction with tax returns may also seek independent professional advice to determine their taxable income and any consequences for their tax code or self-assessment return.