Winter Fuel Payments may be given to pensioners that don’t qualify under the new eligibility criteria
Winter Fuel Payments are set to be sent in November and December, offering pensioners a one-off payment of £200 or £300 based on their individual situations. But those who fall outside the new eligibility criteria may still receive the funds.
Under the new system, everyone above state pension age are expected to receive the payment but those earning more than £35,000 annually will see it taken back by HMRC during the following tax year.
This will be done through an adjustment to their tax code, resulting in pensioners paying a bit more tax each month to return the benefit overpayment.
Official government guidance states: “You will need to wait for HMRC to take back the payment, you cannot pay it sooner.
“HMRC will automatically collect the payment by changing your tax code for the 2026 to 2027 tax year. For a typical payment of £200, the deduction will be approximately £17 per month.”
The updated eligibility criteria for Winter Fuel Payments requires pensioners to have an income below £35,000. If your yearly income exceed £35,000, HMRC will need to reclaim the payment. More information on Winter Fuel Payment eligibility can be found here.
The Gov.uk website has a checker tool enabling people to determine whether their income surpasses the threshold and how HMRC might recover it depending on their circumstances.
Whilst pensioners can opt out of Winter Fuel Payments, the cut-off date for doing so for the 2025/2026 winter period has now passed. From 1 April 2026, pensioners will have the option to opt out of receiving the Winter Fuel Payment for the 2026 to 2027 period onwards.
If you choose to opt out but later wish to rejoin, you can do so by getting in touch with the Winter Fuel Payment Centre. For those who have previously opted out and now wish to rejoin the scheme, they must contact the centre before 31 March 2026 to receive the payment for the winter season of 2025/2026.
In addition to meeting income requirements, pensioners must also fulfil other eligibility criteria to qualify for this seasonal benefit.
They must have been born prior to 22 September 1959 and reside in England or Wales. Individuals requiring permission to enter the UK and whose granted leave states that they cannot claim public funds will not be eligible.