Winter Fuel Payments are now recoverable by HMRC where a pensioner’s individual total income, from private/state pensions and other sources, exceeds £35,000. Pensioners on PAYE with income above £35,000 are currently having their winter 2025 payments recovered. Pensioners are able to avoid having their payments recovered by opting out of receiving the payment.
HMRC will start collecting the Winter Fuel Payment during the year it is paid from the 2027/28 tax year for those on PAYE. The 2026 Winter Fuel Payment will also be collected in the 2027/28 tax year. This means there will be two amounts collected during that tax year unless pensioners have opted out of getting the payment.
Opting out is quick and easy to do. Pensioners in England, Wales and Northern Ireland can opt out of receiving future Winter Fuel Payments using the online forms available on GOV.UK. Pensioners are also able to contact the Winter Fuel Payment Centre at 0800 731 0160.
Pensioners can opt back in to receive payments, should their circumstances change in the future.
HMRC have provided a calculator on GOV.UK to help pensioners work out if their total income will be over £35,000.
More information can be found on GOV.UK.