Pensioners in Scotland with an income of more than £35,000 are being reminded they can opt out of this year's Pension Age Winter Heating Payment if they want to avoid having it recovered through the tax system. The deadline to opt out online is noon on October 19, giving pensioners just under three weeks to decide whether they want to receive the payment.
Change to HMRC recovery method
The warning comes ahead of a change to how HM Revenue and Customs (HMRC) will recover Pension Age Winter Heating Payments from higher-income pensioners. From next year, HMRC will begin collecting the money through pensioners' tax codes in advance rather than recovering it in arrears.
The transition means HMRC will need to collect two winters' worth of Pension Age Winter Heating Payments within the same tax year, covering winter 2026/27 and winter 2027/28. Higher-income pensioners who do not want this year's payment to be recovered through the tax system can instead choose to opt out before the deadline later this month.
Who should consider opting out?
The advice from Social Security Scotland is specifically aimed at pensioners with income above £35,000 who would otherwise receive Pension Age Winter Heating Payment and then have the money recovered through the tax system. Opting out means they will not receive this year's payment in the first place, avoiding the need for HMRC to recover it later.
Pensioners do not have to opt out and can instead receive the payment and allow HMRC to recover it through the tax system. Anyone who wants to opt out online must do so before 12pm on October 19.
Payment rates and eligibility
Pension Age Winter Heating Payment is Scotland's replacement for Winter Fuel Payment and provides support towards heating costs for people of State Pension age. Eligible pensioners will receive between £105.55 and £316.70, depending on their household circumstances, with most people receiving the money automatically.
Payments will start landing in bank accounts automatically from the end of November and continue throughout the winter. Rates for winter 2026/27 are: pensioners in residential care £105.55, single pensioners aged between 66 and 79 £211.15, single pensioners aged 80 and over £316.70, pensioner couples aged between 66 and 79 £105.55, and pensioner couples aged 80 and over £158.35.
Eligibility is based on reaching State Pension age by the end of the qualifying week, which ran from September 21 to 29, 2026. The State Pension age is rising gradually from 66 to 67 for people born on or after April 6, 1960. This means someone needs to have been born on or before June 27, 1960 to have reached the qualifying State Pension age by September 29 and be eligible for this winter's payment.
Most eligible pensioners will not need to make a claim, so any texts, emails or phone calls saying otherwise will most likely be a scam. Social Security Scotland will send the money to the same account used for an individual's State Pension or any Social Security Scotland benefit they receive.
However, a small number of people will need to apply. This includes people who have deferred their State Pension and some couples receiving a joint award of Pension Credit, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Income Support or Universal Credit where the main person receiving the benefit is under State Pension age. An online eligibility checker has also been launched to help pensioners find out how much they could receive.
