State pensioners face a looming Sunday deadline to opt out of a winter payment or risk automatic tax charges of up to £300. The tax charges will apply to pensioners in England, Wales and Northern Ireland with an individual annual income over £35,000 who receive a Winter Fuel Payment this year.
Winter Fuel Payment Details
Winter Fuel Payments are worth between £100 and £300 and will be issued by the Department for Work and Pensions (DWP) to pensioners who were born on or before June 27, 1960. The payment is to help with heating costs during the colder months, but not everyone who is eligible will get to keep the payment, as those who exceed the £35,000 income threshold will have the money clawed back.
For pensioners with an income over £35,000, HM Revenue and Customs (HMRC) will take your Winter Fuel Payment back by either changing your tax code or adding the amount to your Self Assessment tax return.
How HMRC Recovers the Payment
If HMRC changes your tax code to take back the payment, you will be contacted by email or post and will see the tax deducted from your wages, salary or pension will increase. According to HMRC, a typical Winter Fuel Payment is £200. So if pensioners receive a payment of this amount in both the 2026 to 2027 and 2027 to 2028 tax years, HMRC will deduct around £33 per month extra in tax in the 2027 to 2028 tax year. Of course, if you receive a £300 Winter Fuel Payment, the monthly tax charges will be higher.
Opting Out Deadlines
It's possible for pensioners to avoid these extra tax charges altogether by opting out of receiving a Winter Fuel Payment, but there's not long left to do this. The DWP has set two deadlines to opt out, the earlier of which is 6pm on Friday, September 18, 2026, if you do so by phone. But if you opt out online, you have slightly more time as the deadline is 11.59pm on Sunday, September 20, 2026.
The DWP said: "You can choose to opt out of receiving the Winter Fuel Payment. If you do not opt out and your total income is over £35,000, you will receive the Winter Fuel Payment but HMRC will take it back. You cannot return it yourself. You can check how HMRC will take it back."
To opt out of getting the Winter Fuel Payment you can either: use the Manage your State Pension service before 11:59pm on 20 September 2026 (if you get a State Pension), complete the opt out form before 11:59pm on 20 September 2026, or call the helpline before 6pm on 18 September 2026. You'll need to provide your National Insurance number when you use the online form or call the helpline. You'll need to sign in to use the Manage your State Pension service. If you do not already have sign in details, you'll be able to create them.
Opting out of the Winter Fuel Payment won't affect your State Pension and you don't need to opt out every year, as you won't receive a payment in future unless you choose to opt back in. If you do decide to opt back in, you can do so by contacting the Winter Fuel Payment Centre. To get a payment for winter 2026 to 2027, you will need to contact the service before March 31, 2027.
