The Winter Fuel Payment is worth between £100 and £300 and is designed to help people with their energy bills during the colder months of the year – but some people may need to pay it back
While millions across the nation are set to benefit from extra support worth £300, many may be required to pay it back. The Winter Fuel Payment, automatically received by most people born before September 22, 1959, offers between £100 and £300 to assist with energy bills.
Eligibility for this support scheme extends to those claiming a variety of benefits, including the State Pension and Pension Credit. However, if a person’s total income surpasses £35,000, HMRC could reclaim the Winter Fuel Payment.
HMRC has stated that it will recoup payments of up to £300 either by altering your tax code for the 2026/27 tax year or adding the amount to your 2025/26 Self Assessment tax return, where applicable. The income criteria, however, will be assessed on an individual basis.
For instance, in a household where one person earns £30,000 annually and the other £40,000, the individual earning under £35,000 will retain their portion of the Winter Fuel Payment, while the higher earner will need to repay it.
How to check if you will need to pay back the Winter Fuel Payment
If you’re concerned about whether you’ll need to repay the Winter Fuel Payment, the government provides a free online tool to check your income. Simply enter your personal details, including which part of the UK you reside in, your date of birth, and your forms of taxable income.
Taxable income can encompass a broad range of sources, such as:
- State Pension
- Private Pension
- Employment
- Rental properties
- Self-employment
- State Benefits
- Dividends
When utilising the online tool, you’ll be asked to specify your income sources and how much you earn from each. If your total earnings exceed £35,000, you’ll be informed that HMRC will reclaim the Winter Fuel Payment.
The tool will also guide you on when and how HMRC will retrieve the payment. For instance, self-employed individuals earning over £35,000 who also complete a Self-Assessment tax return will likely be informed that they don’t need to include the payment in their 2024/25 tax return, due by 31 January 2026.
Instead, you’ll have to wait for HMRC to reclaim the payment, and it’s unlikely you’ll be offered the option to repay it earlier.
Opting out of the Winter Fuel Payment
Although you generally have the choice to opt out of the Winter Fuel Payment to avoid having to repay it to HMRC, the deadline for doing so for 2025/26 has now passed. Instead, if you automatically receive it, you’ll have to wait for HMRC to reclaim the payment.
If you’re aware that your earnings will exceed the £35,000 threshold in the next payment cycle, you can choose to opt out early by getting in touch with the Winter Fuel Payment Centre before 31 March 2026. You can do this by ringing 0800 731 0160 or writing a letter to Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR, stating your wish to opt out.
