The Department for Work and Pensions (DWP) has issued a fresh alert urging millions of pensioners born on or before September 22, 1960, to review their finances or risk an unexpected tax bill. Those earning more than £35,000 annually will receive the Winter Fuel Payment but have it clawed back by HMRC through the tax system.
Opt-Out Deadlines and Process
Pensioners who wish to avoid receiving the payment must act before two key September deadlines. They can complete the official online opt-out form by 11:59 pm on September 20, 2026, or call the Winter Fuel Payment helpline by 6 pm on September 18, 2026. The DWP emphasizes that pensioners will need their National Insurance number when making the request.
Officials have clarified that recipients cannot simply return the money after it is deposited. Instead, HMRC will automatically recover the full amount from those with annual incomes above £35,000. The opt-out decision carries forward to future years unless pensioners contact the Winter Fuel Payment Centre to opt back in. Those wishing to resume receiving the payment for the 2026-27 winter must inform the DWP by March 31, 2027.
Reporting Changes in Circumstances
The DWP is also cautioning pensioners to report any change in circumstances promptly, such as moving home or entering a care home, which may affect entitlement. Failure to provide accurate information could result in overpayments that must be repaid.
Background of Policy Changes
The warning follows a contentious policy reversal by the Labour government. In July 2024, Chancellor Rachel Reeves limited Winter Fuel Payments to pensioners receiving Pension Credit or other means-tested benefits, calling it a "tough choice" to restore public finances. The move sparked political controversy, with charities warning millions of elderly people would face a choice between heating and eating. Under pressure, the government reversed the decision in June 2025, restoring payments to all pensioners above State Pension age in England and Wales without requiring a qualifying benefit. However, the reinstated scheme includes the £35,000 income threshold for tax clawback.
Contact Information
Pensioners seeking further details can contact the Winter Fuel Payment Centre at 0800 731 0160, available Monday to Friday from 8 am to 6 pm, use the Relay UK service, or write to Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.
