The Winter Fuel Payment provides a helpful boost to millions of pensioners each year, but it can be clawed back by HMRC, depending on your income.
It’s worth up to £300 per year and is designed to help older households cover extra energy costs over the winter months.
It was previously paid to all state pensioners in England, Wales or Northern Ireland, but it’s now limited to pensioners with incomes under a certain threshold.
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If your income is over this amount, you may find the Winter Fuel Payment is retrieved by HMRC through your tax code or self-assessment.
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How to work out if your Winter Fuel Payment will be taken back
Prior to 2024/25, the Winter Fuel Payment was paid to people of state pension age and older living in England, Wales and Northern Ireland.
However, in July 2024, the government announced that pensioners would no longer be entitled to the payment unless they were on Pension Credit or other means-tested benefits.
In 2025, the government U-turned on this decision following public backlash, with then-chancellor Rachel Reeves confirming the rules would be eased so pensioners earning £35,000 or less per year would be able to get the payment.
Now, pensioners with incomes over £35,000 typically still receive the Winter Fuel Payment but HMRC later recovers it.
Your total income is considered, before any deductions, also known as gross income.
If there’s more than one person in the household, each person’s income is looked at on an individual basis. So, if your annual income is £36,000 and your partner’s income is £22,000, you lose your Winter Fuel Payment but they keep theirs.
What’s classed as your total income includes income from a private pension and interest on savings.
Income from the state pension, a trust or dividends from company shares is also considered.
The government has a tool you can use to find out if your income has breached the £35,000 threshold.
You can’t get a Winter Fuel Payment if you live in Scotland but might qualify for the Pension Age Winter Heating payment.
How is the Winter Fuel payment clawed back?
There are a couple of ways HMRC could take your Winter Fuel Payment back from you.
Tax code
HMRC will usually retrieve the payment by automatically adjusting your tax code. 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.
If your Winter Fuel Payment is deducted this way, HMRC should let you know by email or a letter in the post.
Self-assessment
The second way the Winter Fuel Payment could be taken back is through a self-assessment tax return.
If you file an online self-assessment tax return, HMRC will include the payment on your tax return automatically. It should show as a ‘Winter Fuel Payment charge’.
If you file a paper tax return then you will need to manually add the payment.
Can I opt out of getting the Winter Fuel Payment?
You can opt out of getting the Winter Fuel Payment, to avoid being paid it and it then being clawed back.
You can do this through a government opt out form or by calling the Winter Fuel Payment Centre helpline on 0800 731 0160.
This option is no longer available for winter 2026/27. You can opt out of the Winter Fuel Payment for 2027/28 as of 21 December 2026.
If you change your mind, or your circumstances change, you can opt back in by contacting the Winter Fuel Payment Centre.
