What’s happening with the Winter Fuel Payments?

Updated guidance on winter fuel payments has been published by the government.

In June 2025, the government announced that winter fuel payments will be made to all pensioners in England and Wales, but that where a person’s total income exceeds £35,000, HMRC will recover the payment automatically. This will be done by an adjustment in the individual’s PAYE tax code for 2026/27. If they are in self-assessment, HMRC will add it to their tax return for 2025/26.

Is there an option?

The guidance explains that pensioners can choose to opt out of receiving all winter fuel payments by contacting the winter fuel payment centre before 15 September 2025.

Should I opt out?

The default is that all age qualified individuals (those born before 22 September 1959) will receive the winter fuel payment. But anyone with an income over £35,000 will be subject to a tax claw-back, where the payment they receive is required to be returned to the government. This will be a complex process and if you are in this bracket it will be much simpler to opt out of receiving the winter fuel payment before the deadline.

If you are too young to fall into this bracket, you can opt out at a later stage when you become entitled to receive the payment.

How do I opt out?

You can opt out using any of the following steps:

1. Telephone – call the helpline on 0800 731 0160 (good luck!);
2. Online – complete the online opt-out form available here: Do you live in England, Wales or Northern Ireland? – Opt out of Winter Fuel Payment – GOV.UK
3. Post – write to the Winter Fuel Payment Centre.