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 this year to pensioners born before September 22, 1959. However, if your annual income exceeds £35,000, HMRC will automatically reclaim your Winter Fuel Payment.
The reclaim process will be carried out through PAYE or self-assessment return on an individual basis. For instance, if one partner earns £30,000 annually and the other earns £40,000, one person will retain their share of the Winter Fuel Payment while the other will have to repay it.
If your income surpasses £35,000, you have the choice to opt out of receiving the Winter Fuel Payment. You can complete a form on GOV.UK or reach out to the Winter Fuel Payment Centre via post or phone. This option can be exercised following reports regarding DWP state pensioners potentially receiving an additional £352 without any cost.
You can verify if HMRC will recover your Winter Fuel Payment by visiting the GOV.UK website. Katherine Ford, ICAEW’s Technical Manager for Tax, emphasized that pensioners have until Monday, September 15, 2025, to inform HMRC if their total taxable income exceeds £35,000.
Winter Fuel Payments are dispensed by the Department for Work and Pensions (DWP). If you are claiming qualifying benefits between September 15 and 21, 2025, you will automatically receive the payment. Some groups will need to apply by post or phone, and if you are not claiming any of the specified benefits, you must apply for the Winter Fuel Payment if certain conditions apply.
If necessary, applications can be submitted by post starting September 15 or by phone from October 15. Eligible households can receive £200, with those having someone over 80 years old receiving £300.
Eligibility is determined by age at the end of the qualifying week, with exclusions for individuals receiving specific treatments or benefits. In Scotland, the Winter Fuel Payment has been substituted by the Pension Age Winter Heating Payment.