HMRC will reclaim Winter Fuel Payments from pensioners with an income over £35,000 (Image: Getty)
The Department for Work and Pensions (DWP) has issued an ‘opt out’ warning to state pensioners with a high income to avoid facing extra tax charges.
The DWP has confirmed the deadlines for opting out of this year’s Winter Fuel Payment, which are worth between £100 and £300. The payments will roll out to eligible pensioners born before June 28, 1960, in England, Wales and Northern Ireland from November to help with heating costs during the winter. While all pensioners born before this date will be eligible to receive a payment, not everyone is entitled to keep it. Pensioners with incomes of more than £35,000 will have Winter Fuel Payments clawed back by HM Revenue and Customs (HMRC) unless they opt out.
HMRC will begin reclaiming the payments in the following tax year through extra monthly tax charges until the amount is fully repaid. This will be done by a change in tax code for the 2027/28 tax year, or via a Self Assessment tax return.
HMRC is currently in the process of reclaiming Winter Fuel Payments that were issued to high income state pensioners last winter, with those who received a typical payment of £200 paying around £17 extra per month in tax until the full amount has been repaid.
But pensioners can avoid these extra tax charges by stopping DWP from issuing a Winter Fuel Payment altogether by opting out before the 2026 deadline.
The DWP has set two deadlines to do this, both of which fall in September this year. For those who want to opt out via phone, the deadline is 6pm on September 18, 2026, while the deadline for opting out online is 11.59pm on September 20, 2026.
In a reminder to pensioners of the looming deadline, the DWP wrote in a post on X: “If your income is over £35,000, Winter Fuel Payment is recovered through your tax. If you’d prefer not to receive it, you can opt out. Deadlines apply in September.”
Pensioners don’t need to repeat this opting out process every year and won’t receive a Winter Fuel Payment in the future unless they choose to opt back in.
Those who remain opted in will receive a letter from the DWP in October or November this year confirming how much Winter Fuel Payment they will get, before payments are issued in November and December.
If you live alone and no one you live with is eligible for the Winter Fuel Payment, you’ll get a £200 payment if you were born between September 28, 1946 and June 27, 1960, or a £300 payment if you were born before September 28, 1946. The money will usually be paid into the same account as your State Pension and other benefits.
Confirming the opting out process, the DWP said: “To opt out of getting Winter Fuel Payments, you need to either:
call the helpline before 6pm on 18 September 2026
“You’ll need to provide your National Insurance number when you use the online form or call the helpline.
“If your total income is over £35,000 and you did not opt out, HMRC will take your Winter Fuel Payment back. You cannot return it yourself. You can check how HMRC will take it back.
“You do not need to opt out every year. You will not receive Winter Fuel Payment in future years unless you opt in again.
“You can opt in again by contacting the Winter Fuel Payment Centre. To get a payment for winter 2026 to 2027 you need to contact them before 31 March 2027.”
