The Department for Work and Pensions (DWP) has issued a new reminder to pensioners who may want to opt out of receiving this year's Winter Fuel Payment. Older people with an annual income over £35,000 will still receive the payment automatically if they are eligible, but HM Revenue and Customs (HMRC) will subsequently recover the money. However, pensioners who know they do not want to receive the payment can opt out, with DWP reminding people that two important deadlines are approaching.
Two September deadlines for opting out
The latest DWP Touchbase newsletter states people in England, Wales and Northern Ireland can complete the online opt-out form on GOV.UK before 11.59pm on Sunday, September 20. Anyone who wants to opt out by telephone has an earlier deadline and must contact the Winter Fuel Payment Centre before 6pm on Friday, September 18.
DWP said choosing not to receive future Winter Fuel Payments is "quick and easy to do", adding that people can opt back in later if their circumstances change. It is important for pensioners in Scotland to be aware that Winter Fuel Payment has been replaced by Pension Age Winter Heating Payment, which is administered by Social Security Scotland and has separate rules and deadlines - these can be found on MYGOV.SCOT.
£35,000 income threshold explained
Eligible pensioners with annual income of £35,000 or less can keep their Winter Fuel Payment in full. Those with income above £35,000 will have the payment recovered by HMRC. The income threshold applies individually, rather than to the combined income of a household.
DWP's latest reminder states: "If pensioners earn over £35,000, HMRC will take back their Winter Fuel Payment." A calculator on GOV.UK can be used to check whether someone's income is above the £35,000 threshold. Most eligible pensioners will receive their Winter Fuel Payment automatically, so someone does not need to opt out simply because their income exceeds £35,000. If they receive the payment, HMRC will recover it through the tax system.
How to opt out of Winter Fuel Payment
People in England, Wales and Northern Ireland who want to opt out can fill in the online form on GOV.UK before 11.59pm on September 20, 2026, or call the Winter Fuel Payment Centre on 0800 731 0160 before 6pm on September 18, 2026. People who opt out will not receive the payment and therefore will not subsequently have it recovered by HMRC. DWP has also confirmed that anyone who opts out can opt back in for future Winter Fuel Payments if their circumstances change.
Winter Fuel Payments this year
Winter Fuel Payments are worth between £100 and £300 during the 2026/27 financial year, depending on a person's age and household circumstances. The qualifying week is September 21 to 27, 2026, and eligible people should receive a letter in October or November telling them how much they will get. Most payments will then be made automatically in November or December. The payment is available to eligible people born on or before June 27, 1960 who usually live in England, Wales or Northern Ireland.
HMRC recovery changes from April 2027
DWP has also highlighted an important change affecting pensioners who pay their tax through PAYE. From April 2027, HMRC will begin recovering Winter Fuel Payments from higher-income PAYE taxpayers earlier, during the same tax year in which the payment is made. This creates a temporary crossover for some pensioners. DWP explained that if someone receives a Winter Fuel Payment for 2026/27 and is also due another payment for 2027/28, recovery of both payments could take place at the same time.
The change affects people whose income is above £35,000 and who pay tax only through PAYE. Pensioners who complete a Self Assessment tax return will have their Winter Fuel Payment recovered through Self Assessment. Anyone unsure whether their income exceeds £35,000 can use the free checker on GOV.UK. Full information about Winter Fuel Payment eligibility, payments and opting out is also available on GOV.UK.
