Hundreds of thousands of pensioners are set to receive their Winter Fuel Payment over the next few weeks. The payments, worth up to £300, are landing in bank accounts automatically throughout November and December. However, this is the first year of a new system that means pensioners with higher incomes will have to pay the money back.
The payment was reinstated for all eligible pensioners for winter 2025/26, following a government U-turn on previous plans to restrict it to those on Pension Credit. But a new rule means that if your individual income is over a set amount, the payment will be automatically 'clawed back' by HMRC. Here’s how the payment works and what the new income rule means for you.
How much is the Winter Fuel Payment?
The amount you receive depends on your age during the 'qualifying week' (15th to 21st September 2025) and your living situation. To be eligible for the 2025/26 payment, you must have been born on or before 21st September 1959.
The payment amounts are:
- £200 if you were born between 22nd September 1945 and 21st September 1959 (aged 66 to 79)
- £300 if you were born on or before 21st September 1945 (aged 80 or over)
These amounts are usually per household. If you live with someone else who also qualifies, the payment will be split between you. For example, if you and your partner are both under 80, you will each receive £100. Those living in a care home typically receive a reduced amount of either £100 or £150.
The £35,000 income 'clawback' explained
The key change this year is the introduction of an income threshold. If your individual total income for the 2025/26 tax year (6th April 2025 to 5th April 2026) is over £35,000, you will have to repay the entire Winter Fuel Payment. This is often referred to as a "cliff-edge" threshold. It means that if your income is £35,000 or less, you keep the full payment. However, if your income is £35,001 or more, you will have to repay the full £200 or £300. This threshold applies to your individual income, not your household income. This means that if one member of a household earns over the threshold, only their portion will be reclaimed through the tax system.
How will the payment be recouped?
HMRC will manage the process automatically through the tax system. How it's repaid depends on how you pay tax:
- For PAYE taxpayers: If you are employed or receive a private pension, HMRC will adjust your tax code for the 2026/27 tax year. This will spread the repayment in small instalments over that tax year. If you would prefer to avoid having the money deducted each month, you can opt out of receiving the Winter Fuel Payment, however this year's deadline for opting out (14th September) has already passed.
- For Self-Assessment taxpayers: The Winter Fuel Payment amount will be added to your 2025/26 tax return. The repayment will be collected as part of your overall tax bill, which is due by 31st January 2027
When to expect your payment (and what to do if it doesn't arrive)
Most eligible people will receive their Winter Fuel Payment automatically and should have received a letter in October or November confirming the amount and the account it will be paid into. If you do not receive your payment, you should wait until 28th January 2026 before contacting the Winter Fuel Payment Centre. Most people do not need to claim. However, if you are eligible but don't receive other benefits or a State Pension (for example, if you have deferred it), you may need to make a claim. The deadline to make a claim for winter 2025/26 is 31st March 2026. This is also the deadline to "opt back in" and receive the payment if you previously opted out but now find your income falls below the £35,000 threshold.
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