The Department for Work and Pensions (DWP) has issued an urgent warning to high-income state pensioners that they must opt out of the Winter Fuel Payment by September 2026 or face extra tax charges from HM Revenue and Customs (HMRC). Pensioners with total income exceeding £35,000 will have the payment—worth between £100 and £300—reclaimed through tax adjustments unless they formally decline it.
Who Is Affected and How Much Is at Stake?
All pensioners born before June 28, 1960, in England, Wales, and Northern Ireland are eligible for the Winter Fuel Payment, which is paid from November to help with heating costs. However, those whose income surpasses £35,000 are not entitled to keep the full amount. HMRC will recover the payment in the following tax year, either by altering the tax code for 2027/28 or through a Self Assessment tax return. For a typical £200 payment, this translates to roughly £17 extra per month until the debt is cleared.
Opt-Out Deadlines and Process
The DWP has set two deadlines for opting out in September 2026. Pensioners can call the helpline before 6pm on September 18, 2026, or complete the online opt-out form before 11:59pm on September 20, 2026. To opt out, pensioners must provide their National Insurance number. The DWP emphasised in a post on X: “If your income is over £35,000, Winter Fuel Payment is recovered through your tax. If you’d prefer not to receive it, you can opt out. Deadlines apply in September.”
Once a pensioner opts out, they will not receive the payment in future years unless they choose to opt back in by contacting the Winter Fuel Payment Centre before March 31, 2027. Those who remain opted in will receive a letter in October or November confirming their payment amount, with disbursements in November and December.
Payment Amounts and Eligibility Details
Pensioners living alone with no eligible co-residents receive £200 if born between September 28, 1946, and June 27, 1960, or £300 if born before September 28, 1946. The payment is typically deposited into the same account used for State Pension and other benefits. The DWP advises that pensioners who do not opt out and have income over £35,000 cannot return the payment themselves; HMRC will reclaim it automatically.
