The Department for Work and Pensions (DWP) has officially set a deadline for pensioners to opt out of the 2025 Winter Fuel Payment. Following a government reversal announced in June, approximately nine million pensioners in England and Wales are set to receive this annual heating support once again.
Background: Why the Policy Was Changed
In 2024, the Winter Fuel Payment was means-tested for the first time, limiting support to those on certain benefits with incomes below £11,600. This led to a significant reduction in payments for many pensioners.
However, in a shift announced for winter 2025, eligibility has been widened. All pensioners earning under £35,000 annually will now receive the Winter Fuel Payment automatically, depending on age and household circumstances.
Who Qualifies for the Winter Fuel Payment?
Under the revised criteria:
- Individuals earning under £35,000 per year will automatically get £200 or £300, depending on age.
- Those earning over £35,000 annually will still receive the payment but it will be recovered later by HMRC via PAYE or self-assessment.
The income threshold is per person. For example, in a couple where one partner earns £30,000 and the other earns £40,000, only one would retain the payment, while the other would repay it.
Important Deadline to Opt Out
If you’re a pensioner earning above £35,000 and prefer not to receive the Winter Fuel Payment to avoid repayment later, you must inform HMRC by 15 September 2025.
Katherine Ford, Tax Technical Manager at ICAEW, advises using HMRC’s online tool to check income eligibility. If not opted out in time, the payment will be automatically clawed back through either the 2026/27 PAYE code or the 2025/26 self-assessment return.
Qualifying Benefits for Automatic Payments
You’ll receive the Winter Fuel Payment automatically if you meet both criteria:
- You are above State Pension age during the qualifying week (15–21 September 2025)
- You receive any of the following benefits:
List of Qualifying Benefits:
- State Pension
- Pension Credit
- Universal Credit
- Attendance Allowance
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Income Support
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- War Pensions Scheme awards
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
Who Needs to Make a Manual Claim?
Manual applications are required if:
- You have never received a Winter Fuel Payment before
- You deferred your State Pension since your last Winter Fuel Payment
Claim Dates:
- By post: Starting 15 September 2025
- By phone: From 15 October 2025
Payment Amounts
| Age Group | Payment Amount |
|---|---|
| Below 80 and eligible | £200 |
| Aged 80 or older and eligible | £300 |
Eligibility is based on age at the end of the qualifying week. However, some individuals will not be eligible even if they meet income or benefit criteria:
You won’t qualify if
- You were in hospital for free treatment the entire qualifying week and the prior year.
- You were in prison during the qualifying week.
- You were living in a care home since 23 June 2025 and receive benefits like Universal Credit or Pension Credit.
In Scotland, the Winter Fuel Payment is replaced by the Pension Age Winter Heating Payment.
How to Opt Out of Receiving the Payment
If your income exceeds £35,000 and you wish to opt out, you can do so by:
- Filling out the opt-out form on GOV.UK
- Contacting the Winter Fuel Payment Centre by post or telephone
The DWP’s Winter Fuel Payment for 2025 aims to offer support to millions of pensioners during the cold months. While automatic payments simplify the process for many, those earning above £35,000 should act before 15 September 2025 if they wish to avoid future tax recovery. Make sure to understand your income eligibility, check benefit status, and take necessary steps for a smooth winter ahead.
FAQs
What happens if I receive the Winter Fuel Payment but earn over £35,000?
The payment will be recovered automatically via your tax code or self-assessment, unless you opt out by the deadline.
Can both partners in a household receive the Winter Fuel Payment?
Yes, but the payment is income-tested per individual. One may receive it fully, while the other may need to repay it if earning over the limit.
Is there a different rule for Scottish pensioners?
Yes. In Scotland, the DWP Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment system.