Those wishing to opt out of Winter Fuel Payments have only until September to notify the DWP. However, the cut-off date varies depending on your method of contact. People telephoning to opt out have until September 18, while those choosing to opt out online will have until September 20 to complete the process. Winter Fuel Payments begin being issued each November to people above state pension age.
The scheme provides between £100 and £300 as a one-off payment, but the qualification criteria have undergone significant changes in recent years.
Up until the 2023/2024 winter period, these payments were provided to everyone in the UK above state pension age. However, for the 2024/2025 winter, the scheme became means-tested with limited eligibility, permitting only people receiving specific benefits such as Pension Credit to claim the payment.
The limited eligibility triggered widespread criticism and the Government consequently revised the criteria once more.
Currently, the payment is again provided to everyone above state pension age. However, people with an annual income exceeding £35,000 will have the payment recovered through their taxes.
- State Pension
- Company and personal pensions
- Money you earn from employment
- Interest from savings
- Dividends from company shares
- Income from a trust
- Any state benefits that are taxable
- Net profits if you are self-employed
- Net profits from rental income if you rent out property
Income is evaluated on an individual basis rather than by household. This means a retired couple living together with differing income levels might find one partner facing higher taxes to repay the payment while the other remains entitled to retain it.
Higher-earning pensioners can utilise a new online HMRC calculator to establish whether their earnings are sufficient for their Winter Fuel Payments to be recovered through taxation.
Pensioners with annual incomes exceeding £35,000 who wish to avoid an increased tax bill to repay the Winter Fuel Payment can opt out of receiving it in the first place.
To opt out of the payments, pensioners must provide their National Insurance number via the online form or when telephoning the helpline. Once you opt out, you won’t need to opt out again the following year as you won’t receive future payments unless you opt in again.
To opt into the Winter Fuel Payments you will need to contact the Winter Fuel Payment Centre before the end of the winter season you are wanting a payment for. For example, if you wish to receive a payment for the 2026/2027 winter period, you must contact the centre by March 31, 2027.