The Department for Work and Pensions (DWP) has confirmed that pensioners over the age of 66 must notify the government by September 15, 2025, if they intend to opt out of receiving the Winter Fuel Payment. The announcement follows changes to the scheme that now link eligibility to individual income levels for the 2025/26 tax year.
According to the Manchester Evening News, this update affects how the payment will be distributed and potentially recovered in certain cases. The DWP has outlined the opt-out process, but beyond the key dates and general thresholds, it has so far provided limited detail on the operational rollout.
Winter Fuel Payment Reintroduced After Previous Cuts
The UK Government announced in June that the Winter Fuel Payment would return this year for around nine million pensioners across England and Wales. The payment, aimed at helping older adults cover heating costs during colder months, had been scaled back in 2024 due to the introduction of a means-tested model.
According to MoneySavingExpert, the threshold for eligibility was previously as low as £11,600, limiting the number of pensioners receiving the benefit. The recent policy update reverses that change and raises the income ceiling to £35,000 per year.
Income Threshold and Automatic Repayments
Under the 2025 scheme, individuals aged 66 or older will automatically receive £200 or £300, depending on their age, provided their annual income is below £35,000. Pensioners who earn above that threshold will still receive the payment—but it will later be recovered by HMRC through the tax system.
Those under PAYE will see the repayment reflected in their 2026/27 tax code, while individuals who complete self-assessment will have the payment added to their 2025/26 return.
How to Opt Out Before Payment Is Issued
To avoid automatic recovery, higher-income pensioners have the option to opt out of receiving the Winter Fuel Payment in advance. The opt-out deadline is September 15, 2025. Forms are available on the GOV.UK website, and opt-out requests can also be made via post or telephone.
As noted by Katherine Ford, technical tax manager at ICAEW, those unsure about their eligibility can use HMRC’s online tool to check whether their income exceeds the threshold.
DWP Eligibility Based on Benefits and Household Structure
DWP eligibility is determined per person, not per household. For instance, if one partner earns £30,000 and the other earns £40,000, only the latter will need to repay their portion of the Winter Fuel Payment.
According to DWP guidance, automatic qualification applies to pensioners who are over the State Pension age during the qualifying week—September 15 to 21, 2025—and who receive one or more of the following benefits.:
- State Pension
- Pension Credit
- Universal Credit
- Attendance Allowance
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Income Support
- income-related ESA
- income-based JSA
- War Pensions Scheme awards
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
Additional Conditions and How to Make a First-Time Claim
Some groups will not receive the payment automatically and must apply manually if either of the following conditions apply:
They’ve never received a Winter Fuel Payment before
They’ve deferred their State Pension since their last payment
Applications by post will open from September 15, while telephone claims will be accepted from October 15.
Exclusions From Winter Fuel Payment
Pensioners will not qualify for the payment if they:
Were in hospital for free treatment during the entire qualifying week and for the previous 12 months
Were in prison during the qualifying week
Lived in a care home continuously since June 23, 2025, and receive certain income-related benefits such as Pension Credit or Universal Credit
In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, administered under separate criteria.
