The Winter Fuel Payment — previously withdrawn from many pensioners — is now restored, especially for those on higher incomes who had been previously told they weren’t eligible.
You can now reclaim the £300 (or £200) payment from the Department for Work and Pensions (DWP) if your income exceeded the threshold.
When and How You’ll Find Out
Eligible pensioners for 2025–26 should expect a letter in October or November, detailing their exact Winter Fuel Payment amount. Most payments arrive automatically in November or December.
Who Qualifies—and How Much You’ll Get
- Born on or before 22 September 1959 (or 21st in some sources) and residing in England or Wales during the qualifying week (15–21 September 2025).
- Receives between £200 (standard rate) and £300 (if aged 80 or over) depending on age and circumstances.
Income Limit and “Tax Code Loophole”
If your annual taxable income exceeds £35,000, you will still receive the Winter Fuel Payment — but must repay it to HMRC. This is handled via:
- Automatic tax code adjustments in the 2026–27 tax year (and possibly 2027–28), with monthly deductions of around £17–£33, depending on payment amount.
- Or, via Self-Assessment, where the amount is added to your 2025–26 tax return if applicable.
This arrangement effectively acts as a tax code loophole—you do initially get the money, but it’s clawed back later via taxation.
Political Backdrop
Chancellor Rachel Reeves reversed the previous means-tested cut, restoring the benefit to about nine million pensioners earning £35,000 or less.
Higher-earning recipients must repay via tax. The decision follows public and political pressure after widespread discontent over the 2024 cuts.
Scotland and Northern Ireland Considerations
- In Scotland, a separate Pension Age Winter Heating Payment will match the UK-level Winter Fuel Payment.
- In Northern Ireland, eligibility follows the same rules as England and Wales.
The Winter Fuel Payment for 2025–26 has been reinstated for most state pensioners, even those earning above £35,000—though higher earners must repay it through the tax system later. Expect a notification letter in October or November, followed by payment in November or December.
The process may feel like a loophole, but it ensures eligible pensioners receive immediate support with heating costs, with higher-income recipients returning the benefit via adjustments rather than upfront exclusion.
FAQs
Who qualifies for the Winter Fuel Payment?
Pensioners born on or before 22 September 1959, living in England or Wales during 15–21 September 2025, will qualify for a £200 or £300 top-up.
What happens if I earn over £35,000 a year?
You’ll still get the payment, but it will be reclaimed by HMRC—either through adjustments to your tax code (spreading the recovery over monthly deductions in 2026–27/27–28) or via your 2025–26 Self-Assessment return.
When will I receive the Winter Fuel Payment?
You will get a letter in October or November 2025 with the payment amount. The money is generally paid automatically into your account in November or December 2025.
