The Department for Work and Pensions has published new data on winter fuel payments for 2025 to 2026, showing that 10.9 million people received support worth between £100 and £300. The figures also highlight the number of pensioners who may need to repay the money through the tax system if they did not opt out.
Millions Could Face Repayments Through the Tax System
Under the current rules, pensioners with more than £35,000 in taxable income who received the winter fuel payment and did not opt out will have the amount recovered through tax. According to the Department for Work and Pensions, an HMRC impact assessment estimates that 2.2 million pensioners, including those in Northern Ireland, will be affected by repayments.
The amount recovered depends on the payment received. A person who received £200 may repay it through tax deductions of around £17 per month. From April 2027, HMRC will begin recovering winter fuel payments in advance during the same tax year that the payments are made.
This change means some people could see overlapping deductions. For example, a pensioner who received £200 during winter 2025 to 2026 and another £200 during winter 2026 to 2027 could have monthly tax deductions of around £30 to £33 while both payments are being recovered.
Rebecca Wilcox, a consumer expert speaking on BBC Morning Live, said people with taxable income above £35,000 may want to consider opting out of the payment to avoid later repayments. She explained that the recovery system would temporarily result in higher monthly deductions for some recipients before returning to the usual process.
Opt-Out Figures Remain Limited as Payment Rules Change
The option to refuse the winter fuel payment remains available for pensioners who expect their income to exceed the repayment threshold. Devon Live reported that 53,000 pensioners opted out of receiving the payment for winter 2025 to 2026.
The latest figures show a significant increase in recipients compared with previous years. Winter fuel payments were received by 10.9 million people in 2025 to 2026, compared with 1.3 million in 2024 to 2025 when the payment was limited to pensioners receiving certain means-tested benefits. The figure was 290,000 in 2023 to 2024, when the policy was universal for most pensioners.
The payments vary depending on age and household circumstances. According to the DWP, eligible people of state pension age but under 80 who live alone, or only with people who do not qualify, receive £200. Those aged 80 or over in the same situation receive £300.
Recipients living with another qualifying person may receive between £100 and £200 depending on age, while some people living in care homes receive between £100 and £150 if they do not receive certain benefits. Pensioners who want to opt out of the winter fuel payment can do so through the Manage your State Pension service or by completing the online opt-out form before 11:59pm on 20 September 2026.
