New figures from the Department for Work and Pensions (DWP) show that more than 2.2 million pensioners could be required to repay their Winter Fuel Payment (WFP) through tax. The deadline to opt out is this Friday, September 18, for those calling the helpline, or Sunday, September 20, for those applying online.
The repayment applies to anyone with a taxable income above £35,000 who does not opt out. BBC Radio 4 Moneybox presenter Paul Lewis explained: “If you’re over state pension age you should get a winter fuel payment later this year unless you chose not to. Some people say ‘no thanks’ because the payment is means tested.”
“If your annual taxable income is more than £35,000 the payment will be taken back next year. To save that hassle some people chose not to get it in the first place. 50,000 opted out last winter. If you did that, you won’t have to opt out again but if you want to opt out for the first time the deadline is barely a week away.”
Who is eligible and how to opt out
Moneybox reporter Dan Whitworth said: “The Winter fuel payment is for people who live in England, Wales or Northern Ireland born on or before June 27 1960. Now they get between £100 and £300, and that depends on their age or circumstances. To opt out you must tell the DWP by September 20.”
“The easiest way is to complete the opt-out form - just search winter fuel payment opt-out on gov.uk. As I said the deadline to do that Sunday September 20. Alternatively you call the winter fuel payment helpline [0800 731 0160] but you need to do that by this coming Friday 18 September by 6pm.”
Repayment amounts and double recovery
New statistics show that more than 2.2 million people are set to be hit by having to repay their Winter Fuel Payments. Last year 10.9 million people received between £100 and £300 to help pay for heating last winter, up from 1.3 million the year before when it was withdrawn from everyone except those getting Pension Credit.
Anyone who gets more than £35,000 in taxable income and doesn’t opt out will have to pay it back through tax. This means if people received £200, they will be paying it back at the rate of £17 a month. However, from April 2027, HMRC will start recovering Winter Fuel Payments in advance through PAYE in the same tax year they are paid, meaning some could effectively be paying back double.
For example, an individual who received £200 of winter fuel payment in 2025/26 and a further £200 in 2026/27 may see their monthly tax increase by around £30 to £33 during the period both payments are being recovered from January 2027.
Opt-out figures and advice
People could avoid this by opting out of the payment entirely, but the new figures showed that 53,000 pensioners opted out from receiving a WFP for winter 2025 to 2026. The DWP added: “A HMRC impact assessment estimates that 2.2 million pensioners (including those from Northern Ireland) would be impacted by recoveries.”
Consumer expert Rebecca Wilcox explained to BBC Morning Live viewers earlier this year that anyone who has more than £35,000 taxable income may want to opt out of the 2026 Winter Fuel Payment or face paying back a sum of ‘£33 each month’ back. She warned that from April millions of households are being contacted by HMRC and told they may need to repay their Winter Fuel Payment.
Ms Wilcox said that a key change later this year means people would be paying back double the full amount. On cancelling it in advance, she explained: “If you know your personal income is going to be over the threshold of £35,000 then opt out of it for the next year and then you don’t have to worry about the next payment. The reason you’ll want to opt out is because the payments are going to double just for one year.”
Statistics from the DWP showed the number of WFP recipients in winter 2025 to 2026 was 10.9 million, an increase of 9.6 million since winter 2024 to 2025, when WFP was made to eligible pensioners receiving certain means tested benefits, and 290 thousand from 2023 to 2024 when the policy was universal and most pensioners received a WFP. Of all WFP recipients, 37% received £100, 9% received £150, 38% received £200 and 17% received £300.
