Winter Fuel Payment eligibility rules explained

Pensioners struggling with extra energy costs in winter may be eligible for tax-free money worth up to £300.

The Winter Fuel Payment is issued to millions of older Brits every year to help cover heating bills over the colder months.

How much you get is based on a number of factors including your age and your financial circumstances, with payments worth up to £300.

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What is the Winter Fuel Payment and who is eligible?

The Winter Fuel Payment is an annual tax-free payment worth up to £300 and it’s issued to millions of pensioners in England, Wales and Northern Ireland.

The payment used to be universal before the Labour government announced it would become means-tested from winter 2024/25.

The government later did a U-turn on this policy, and eligibility is now based on income and age.

To receive and keep the Winter Fuel Payment, you need to:

• Have reached the official state pension age
• Have an income of, or below, £35,000 a year

You need to meet this eligibility criteria in the ‘qualifying week’. For the 2026/27 year, this was 21 to 27 September.

How much is the Winter Fuel Payment and when do you receive it?

How much you receive is based on whether you live alone or with a partner and how old you or both of you are.

Whether you or you and a partner receive benefits can also impact how much your Winter Fuel Payment is, with payments ranging from £200 to £300. You can find out more via gov.uk.

If you are eligible for the Winter Fuel Payment, you will receive a letter in October or November telling you how much money you can expect to receive.

Most Winter Fuel Payments are made in November or December.

Source: Gov.uk, entitlements based on households not receiving benefits

How is the Winter Fuel Payment claimed back from pensioners?

Retirees whose income is over £35,000 aren’t eligible for the Winter Fuel Payment, and need to repay it if they receive it. You can check if your income is likely to breach the threshold via gov.uk.

If you live with someone else, their income does not count towards your total income.

If your income does surpass £35,000, HMRC will take the Winter Fuel Payment back from you in one of two ways.

Tax code

The first, and the most likely, way it could be taken back is by HMRC adjusting your tax code automatically. This applies to people who usually pay tax through PAYE on their pension or wages.

In this case, HMRC will change your tax code for the tax year and deduct money from your income each month.

Self-assessment

The second way the Winter Fuel Payment could be taken back is through a self-assessment tax return.

HMRC says that in this case it will include the payment on your tax return as part of your income automatically if you complete a self-assessment tax return each year.

If you file your tax returns on paper then you will need to manually add the payment on the return.

Can you opt out of the Winter Fuel Payment?

If you don’t wish to receive the Winter Fuel Payment, you can opt out via an opt out form on gov.uk or by calling the Winter Fuel Payment Centre helpline on 0800 731 0160.

If you opt out and later decide you want to opt back in, you should contact the Winter Fuel Payment Centre.

How to claim the Winter Fuel Payment

Most eligible people don’t need to claim the Winter Fuel Payment, but you will need to if you live abroad.

In this instance, you can claim the payment by post or by phone. Further information including contact details and cut-off dates can be found on the government website.

If you live in the UK and are expecting a letter through the post in October or November, but you don’t receive it, you may need to claim by contacting the Winter Fuel Payment Centre.