Winter fuel payments
For winter 2025/26 onwards, winter fuel payments will once again be made to all pensioners in England and Wales. (Pensioners in Northern Ireland are eligible for a winter fuel payment from the Northern Ireland Executive; in Scotland, pensioners may be eligible for the pension-age winter heating payment.)
Recent guidance explains who is eligible to receive a payment, how it will be calculated and when it will be paid. This can be found at www.gov.uk/winter-fuel-payment .
How much are the payments?
For 2025/26, winter fuel payments in England and Wales will be:
- £200 for households including someone between state pension age and 79; and
- £300 for households including someone aged 80 or over.
The payment will be shared by pensioners in the household where the household is not in receipt of an income-related benefit.
Those living in a care home
If eligible, they will get either:
- £100 if born between 22 September 1945 and 21 September 1959; or
- £150 if born before 22 September 1945.
You will not be eligible if both of the following apply:
- You get Universal Credit, Pension Credit, Income Support, income based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA); and
- You lived in a care home for the whole time from 23 June 2025 or earlier.
Recovery through the tax system
The payments to be made in winter 2025/26 will be automatically recovered in full by HMRC from pensioners with total income of more than £35,000, either:
- through the person’s PAYE code for 2026/27; or (if they are within self-assessment)
- by HMRC adding it to their online tax return for 2025/26.
If the person completes a paper tax return, they will need to include the payment on their return.
The payment will be recovered from individuals based on their own personal taxable income, not household income.
Opting out
Pensioners can opt out of receiving the payment. This will mean that they will not have to deal with the possible complications of recovery through the tax system.
In England, Wales and Northern Ireland, this can be done by completing an online opt out form. It is also possible to opt out by calling or writing to HMRC. This must be done before 15 September 2025.
The Scottish Government has said that more information on opting out of the winter heating payment will be published in autumn 2025.
If you will be receiving winter fuel payments again and are unsure about how this will impact your tax position, please contact us with any questions you have.
