Winter Fuel Payment 2025: HMRC Deadline for Those Earning Over £35,000 to Opt Out

Date: September 2, 2025

HMRC has made a big change to the rules for Winter Fuel Payments for pensioners. Starting with the 2025/26 tax year, the payment will only be given to people whose taxable income is £35,000 or less.

If you make more than that, you can choose to stop getting the payment by the deadline of 15 September 2025. If you don’t opt out, HMRC might take the payment back later through the tax system.

Who Is Eligible for Winter Fuel Payments in 2025/26?

From April 2025, eligibility will depend on an individual income test, not combined household income. This means:

Threshold: the Winter Fuel Payment will now only apply to people with taxable income up to £35,000.

Starting in April 2025, the payment will depend on your individual income, not combined income from your household.
This means:

What counts as income?

This includes:

State pension
Private or workplace pensions
Dividends
Savings interest
Rental income
Other taxable benefits

If your income goes above the limit, HMRC will take back the full payment, which is usually between £100 and £300, depending on your age. For example, if one person in a couple earns more than £35,000, they won’t get the payment, but the other person can still get it if their income is under the threshold.

How Can You Opt Out of the Winter Fuel Payment?

Pensioners in England, Northern Ireland, and Wales can choose to stop receiving the payment in three ways:

Submitting an online form at gov.uk
Writing a letter directly to HMRC
Calling 0800 731 0160 and choosing option 2
HMRC has also created an online income calculator.

You will need to provide details of all taxable income from 6 April 2025 to 5 April 2026.

What Happens If You Don’t Opt Out?

If your income goes over £35,000, HMRC will automatically take back the payment.
This can happen in two ways:

By changing your PAYE tax code for 2026/27
By adding it to your 2025/26 Self-Assessment return

If you file your taxes on paper, you’ll need to include the amount yourself.

Changing Income Levels – Can You Opt Back In?

If you opt out but your taxable income for 2025/26 is £35,000 or less, you can choose to get the payment again, but only until 31 March 2026.
We recommend checking your income in early March 2026 to make sure you don’t miss out on the payment.

Be Aware of Winter Fuel Payment Scams

HMRC has warned about a rise in scams connected to these changes. Some fraudsters may pretend to help pensioners apply. HMRC recently announced it had closed over 4,600 scam websites.

Only use services from gov.uk, contact HMRC directly, or talk to a trusted adviser.
Don’t share any personal information with unknown callers, emails, or people you don’t know.

What About Scotland and Northern Ireland?

Scotland: A different Winter Heating Payment will be available, but the same £35,000 income limit is expected. Details on how to opt out will be shared in autumn 2025.
Northern Ireland: Payments will stay under the local Executive, and they will use the same income level rules.

Winter Fuel Payments: Key Steps for Pensioners

Check your income using HMRC’s online tool
If your income is over £35,000, you can opt out by 15 September 2025
Be careful of scams and only use HMRC-approved methods.

Alexander & Co – expert tax advice

Whilst Alexander & Co doesn’t provide advice on winter fuel payments, it can advise clients on the tax treatment of this, and the implications of opting out.

If you need advice on tax matters, including pension taxation, Self-Assessment or inheritance tax planning, please contact Alexander & Co directly for tailored support.