Ruth Emery
The majority of pensioners will get the Winter Fuel Payment when temperatures drop this year after the government rowed back on its controversial decision to remove the Winter Fuel Payment for millions of people.
The Treasury says nine million pensioners in England and Wales will qualify for the payment, worth up to £300, this winter.
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The energy price cap for October to December will rise by 2%, taking the average annual gas and electricity bill on a variable tariff to £1,755.
However, about two million people over state pension age who have taxable incomes of more than £35,000 will not be eligible for the Winter Fuel Payment.
They will need to repay the allowance through tax – unless they choose to opt out, and the deadline to do so is fast approaching.
What is the Winter Fuel Payment?
The Winter Fuel Payment is an annual tax-free allowance worth £200 per eligible household, or up to £300 if the household contains someone aged 80 or over.
It aims to help pensioners pay their energy bills during the coldest months of the year.
Pensioners have been eligible for some support on energy bills since 1997, but universal help was removed for millions of pensioners in the 2024 Autumn Budget, when it became means-tested.
Following a significant policy climbdown by Labour, the government announced in April that, while the benefit will remain means-tested, the eligibility criteria will be significantly widened when payments are made in winter 2025/26.
Who gets the Winter Fuel Payment?
Eligibility is based on a person’s age and place of residence during the qualifying week, which is 15 to 21 September 2025 for this winter's payment.
To receive and keep the Winter Fuel Payment, you will now need to meet two criteria:
- You will need to have reached the official state pension age. For the 2025/26 allowance, a person needs to have reached this by 21 September 2025
- You will also need to have an income of, or below, £35,000 a year
The Treasury says the “vast majority” – over three quarters – of pensioners will meet these criteria and that the threshold is “well above” the income level of pensioners in poverty.
Pensioners won’t need to take any action to receive the benefit as they will automatically be paid the allowance. Meanwhile, those with incomes above the threshold will have it automatically recovered by HMRC.
The requirements to claim the benefit are much less stringent than they were in 2024 when pensioners had to be claiming certain other state benefits, such as Pension Credit or Universal Credit.
Chancellor Rachel Reeves said “no pensioner on a lower income will miss out” on the Winter Fuel Payment this year.
She added: “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.”
How will the Winter Fuel Payment be claimed back from pensioners?
Retirees whose income is over £35,000 will not be eligible for the Winter Fuel Payment, and will need to repay it if they receive it.
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 2026/27 tax year and deduct money from your income each month.
For example, for a typical Winter Fuel Payment of £200, the taxman will deduct around £17 from your pension income per month.
However, the government has said that in the 2027/28 tax year, this deduction will rise to around £33 as HMRC will collect payments for both 2026 and 2027. The deduction will return to £17 per month for the 2028/29 tax year.
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 2025/26 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 £200 to £300 Winter Fuel Payment, then you are able to opt out.
To do this, you will need to complete the opt out form on gov.uk on or before 14 September 2025. Or, you can call the helpline (0800 731 0160) before 6pm on 12 September 2025.
If at a later time you decide you would like to get the payment, then you can opt back in by contacting the centre.
If you have opted out and changed your mind, you will need to get in touch before 31 March 2026 to get the payment this winter (2025/26).
How much is the Winter Fuel Payment and when will you receive it?
If you live alone and qualify for the Winter Fuel Payment but are under 80 years old, you will receive £200. If you are 80 or over, you will receive £300. The payment is per household, so if you live with someone else and you both qualify, you will only receive one payment. The same age thresholds apply.
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. If you do not receive a letter but think you are eligible for the benefit, you can check whether you need to make a claim using the government website.
Most payments are then made in November or December.
How to claim the Winter Fuel Payment
You should receive the Winter Fuel Payment automatically, if you are the correct age and have an income of, or below, £35,000.
If you meet the criteria then you will not need to complete any extra steps to be given the payment, the Treasury said.
One exception is if you live abroad. In this instance, you will need to claim the payment by post or by phone. Further information including contact details and cut-off dates can be found on the government website.
Keep an eye on your post in October and November for a letter telling you how much Winter Fuel Payment you will get. If you do not receive this but think you should be eligible for the payment, it is possible that something has gone wrong.
You can contact the Winter Fuel Payment Centre if you have any concerns. Contact details can be found on the government website.
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