The payments will be made to all state pensioners who are eligible to claim the Winter Fuel Payment, with most people set to receive their cash in November or December 2025
State pensioners are in line for a £100 boost to their Winter Fuel Allowance, thanks to a Labour Party government initiative that will benefit nine million elderly individuals.
The Department for Work and Pensions (DWP) and Labour have pledged to distribute £200 payments to state pensioners born before 1959. However, those born before 1945 – therefore aged 80 and above – are set to receive £300, marking a significant £100 increase.
Eligible pensioners residing in England and Wales who qualify for a Winter Fuel Payment during the winter season of 2025-26 will be notified via letter in October or November 2025 detailing the amount they will receive. The sum awarded will depend on the individual’s birth date and circumstances between 15 and 21 September 2025.
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Most qualifying recipients can expect payment in November or December 2025. Pensioners in Scotland may be eligible for the Pension Age Winter Heating Payment, with disbursements commencing from November 2025.
Meanwhile, individuals in Northern Ireland could potentially receive a WFP from the Northern Ireland Executive, reports Birmingham Live.
For those WFP recipients whose income exceeds £35,000 in the 2025-26 financial year, HMRC will reclaim the full amount paid. ‘Income’ is defined according to ‘total income’ under HMRC regulations, meaning no deductions will be made for Gift Aid or similar contributions.
In most instances, the recovery of the 2025-26 Winter Fuel Payment will be automatically processed through PAYE in the 2026-27 tax year. HMRC will adjust the recipient’s tax code to collect approximately £17 per month, based on a typical WFP of £200.
In the 2027-28 tax year, roughly £33 per month will be deducted for a typical WFP of £200. This is due to HMRC collecting WFPs from both 2026 and 2027 during the 2027-28 period.
The monthly deduction will then revert to approximately £17 per month for the 2028-29 tax year. The WFP will not be recovered via PAYE if the recipient submits a Self Assessment tax return.
In such cases, HMRC will automatically include the 2025 WFP on the 2025-26 return. However, if an individual files a paper tax return, they will need to manually include the WFP.