The new rules for this year have been confirmed by the Government
Not everyone will get to keep Winter Fuel Payments.
HMRC will be taking money back from certain state pensioners under new rules.
It’s part of the new Winter Fuel Payment system for 2025/26, with details confirmed by the Government.
All pensioners will initially be paid the cash, worth up to £300, but not everyone will get to keep it.
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Only those with incomes below £35,000 will qualify for Winter Fuel Payments this year.
Those who get more than that amount will initially get the money but it will then be claimed back by HMRC through the tax system. This will be done automatically though PAYE.
Those who don’t qualify are being given the opportunity to opt out of the payments, to avoid this process.
They must do this by September 15.
Katherine Ford, ICAEW technical manager, tax, said: “Pensioners have until Monday, September 15 2025 to contact HMRC to opt out of the Winter Fuel Payments if their total income for tax purposes is more than £35,000.
“HMRC have a useful online tool to check if income is over this amount.
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“If a person with income over £35,000 receives the payment, it will be recovered automatically through their pay as you earn tax code for 2026/2027, unless they are in self-assessment, in which case it will be added by HMRC to their tax return for 2025/2026.“
The winter payments are worth £200 for those aged under 80 and £300 for those over 80.
Millions more will be getting the support this year following a backlash against last year’s cuts.