The Department for Work and Pensions (DWP) has issued a fresh alert urging millions of pensioners to check their finances or risk an unexpected tax bill. Those born on or before 22 September 1960 who earn more than £35,000 annually will have the Winter Fuel Payment recovered through the tax system, meaning the cash could land in their bank account only to be clawed back later by HMRC.
Opt-Out Deadlines in September 2026
Pensioners who do not wish to receive the payment at all must act before two key deadlines. The online opt-out form must be completed by 11:59pm on 20 September 2026. Alternatively, calls to the Winter Fuel Payment helpline must be made by 6pm on 18 September 2026. The DWP stressed that individuals need their National Insurance number when making the request.
Officials emphasised that people cannot simply repay the money themselves once it has been paid. Instead, HMRC will automatically recover it through the tax system from those whose annual income exceeds £35,000.
Opt-Out Decision Lasts Beyond This Winter
The opt-out decision is designed to carry over to future years. Anyone who chooses not to receive the payment will automatically remain opted out unless they contact the Winter Fuel Payment Centre to opt back in. Those wanting to receive the payment again must notify the DWP by 31 March 2027 to be included for the 2026-27 winter payment.
The department also warned pensioners to report any change in circumstances promptly, such as moving home or entering a care home, as failing to provide accurate information could lead to overpayments that must be repaid.
Background: Policy Reversal and Controversy
In July 2024, Chancellor Rachel Reeves restricted Winter Fuel Payments to pensioners receiving Pension Credit or other means-tested benefits, calling it a "tough choice" to repair public finances. The decision sparked backlash from charities and Labour MPs, who warned that millions of older people would face a choice between heating and eating. Amid mounting pressure, the Government reversed course in June 2025, reinstating universal payments for all pensioners above State Pension age in England and Wales. However, the reinstated scheme introduced the new condition that those earning over £35,000 would have the amount recovered via the tax system.
Campaigners have argued that the arrangement risks confusing many older people who may not realise the payment could later increase their tax bill. According to the DWP, pensioners needing further information can contact the Winter Fuel Payment Centre on 0800 731 0160 between 8am and 6pm, Monday to Friday, use the Relay UK service, or write to the Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.
