The government announced in June 2025 that all pensioners in England and Wales will be eligible for the winter fuel payment for this winter onwards. Pensioners in Northern Ireland may be eligible for the winter fuel payment from the Northern Ireland Executive, and pensioners in Scotland may be eligible for the pension age winter heating payment. The payment will be recovered through the tax system where the person’s income is more than £35,000 unless they opt not to receive the payment.
Katherine Ford, ICAEW Technical Manager, Tax, said:
“Pensioners have until Monday 15 September 2025 to contact HMRC to opt out of the winter fuel payments if their total income for tax purposes is more than £35,000. HMRC have a useful online tool to check if income is over this amount.
“If a person with income over £35,000 receives the payment, it will be recovered automatically through their pay as you earn tax code for 2026/2027, unless they are in self-assessment, in which case it will be added by HMRC to their tax return for 2025/2026. If they fill in a paper self-assessment tax return, they will need to remember to include it on the return.
“Pensioners in England, Wales and Northern Ireland can opt out by filling in an online form or by writing to or calling HMRC by 15 September at the latest.
“A pensioner may have believed that their income would exceed £35,000 and therefore opted out. If their income for 2025/26 turns out to be £35,000 or less, they have until 31 March 2026 to opt back in to receive the payment. Pensioners who have opted out, and anyone who helps them with their finances, may want to set a reminder to review their income in early to mid-March 2026.
“The Scottish Government says it will provide details on opting out in the autumn.”
ENDS
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