Winter Fuel Payment: who gets it and the income threshold

The Winter Fuel Payment is an annual, tax-free payment to help people of pension age with their heating costs during the colder months¹. It is paid in England, Wales and Northern Ireland to households where someone has reached State Pension age by the end of a qualifying week in September, and most people receive it automatically in November or December without having to claim². The amount is between £100 and £300 depending on the household's circumstances, broadly £200 for a household with someone of State Pension age and £300 where someone is aged 80 or over³.

The big change in recent winters is the £35,000 income threshold. Since winter 2025, eligibility was expanded again so that pensioners with total incomes below or equal to £35,000 keep the payment, but those with income above that level still receive it and then have it taken back through the tax system by HMRC⁵. Around 2 million payments are recovered this way, leaving around 9 million pensioners as net beneficiaries⁶. This page explains who qualifies, how much is paid, how the recovery works through PAYE or Self Assessment, how to opt out, and where the rules differ in Scotland and abroad.

What the Winter Fuel Payment is and how the rules have changed

The Winter Fuel Payment was introduced in 1997 as an annual tax-free lump sum for people of pension age in England and Wales, to help them with fuel costs⁹. Northern Ireland has its own equivalent regulations, and the Department there must pay a Winter Fuel Payment to a person who has reached State Pension age in or before the qualifying week and is ordinarily resident in Northern Ireland¹⁰. The payment is still tax-free, and it does not count as income when entitlement to other benefits is worked out¹¹.

The eligibility rules have swung sharply over the last few winters. From winter 2024/25, households in England and Wales were no longer entitled unless they received Pension Credit or certain other means-tested benefits⁹. Then from winter 2025, eligibility was expanded again to include pensioners with total incomes below or equal to £35,000⁵. The regulations that put this into effect made Winter Fuel Payments universal again, increasing the number entitled from 1.5 million to 10.9 million, with around 2 million of those payments then recovered through the tax system from people whose income is above the threshold⁶.

In practice this means the payment now works in two halves. Everyone of pension age in England, Wales and Northern Ireland who meets the residence rules gets the payment, and most are paid automatically. Then, after the tax year ends, HMRC applies a separate income tax charge equal to the full value of the payment to anyone whose total income was over £35,000⁵. The payment itself is not being made taxable, and the amount received is not affected, but the charge claws it back from higher-income pensioners⁵. People in receipt of certain means-tested benefits in the qualifying week are exempt from the charge regardless of their income⁵.

How much you get: £100 to £300 depending on age and household

The headline amounts are set in legislation. Broadly, Winter Fuel Payments are £200 for a household with someone of State Pension age and £300 for a household with someone aged 80 or over³. The Office for Budget Responsibility describes the payment as between £100 and £300 depending on household circumstances⁴, because the lower amounts apply in particular living situations.

The lower rates come from the detailed rules in the regulations. A person under 80 who receives no relevant benefit for the qualifying week, and who lives with another person entitled to a Winter Fuel Payment, gets £100 rather than £200, because the household shares one payment⁷. The same £100 amount applies to a person under 80 in residential care with no relevant benefit, and £150 applies to a person aged 80 or over in the same circumstances¹⁰. A person under 80 who receives a relevant benefit and lives with a partner aged 80 or over gets £300⁷.

The "relevant benefits" that matter here are the means-tested ones: Pension Credit, Universal Credit, income-related Employment and Support Allowance, income-based Jobseeker's Allowance and Income Support⁶. Whether you received one of these in the qualifying week affects which amount applies to your household, not whether you get a payment at all under the current universal rules.

Who qualifies: State Pension age and the qualifying week in September

Two conditions decide whether you qualify: your age and where you live. You must have reached State Pension age before or during the qualifying week in September, and you must live in England, Wales or Northern Ireland¹³. The qualifying week is defined in legislation as the week beginning on the third Monday in September of that year⁷. For winter 2025/26 that was 15 to 21 September 2025⁶.

State Pension age is the earliest age you can start receiving your State Pension, and it is worked out based on your gender and date of birth¹⁴. It is currently 66 for both men and women, and it is rising. Between April 2026 and March 2028, the State Pension age is rising from 66 to 67¹⁵. People born from April 1961 to March 1977 will reach State Pension age at their 67th birthday, and a further rise to 68 is planned for those born from April 1977 onwards, though that is subject to review¹⁶. The House of Commons Library notes the rise to 67 is due between 2026 and 2028, and to 68 between 2044 and 2046¹⁷.

Because the qualifying week falls in September, the date you reach State Pension age within the year matters. For winter 2026/27 in England and Wales, you could get a Winter Fuel Payment if you were born on or before 27 June 1960, which is the birth date that reaches State Pension age by the end of that September's qualifying week¹². You qualify for your first Winter Fuel Payment when you reach State Pension age¹¹, so anyone whose State Pension age is pushed later by the rise to 67 waits longer for their first payment. If you are unsure of your own State Pension age, the nidirect calculator works it out from your date of birth, and the results can change in future because the age is regularly reviewed¹⁴.

The £35,000 income threshold: when the payment is taken back

The £35,000 threshold is the income level at which the payment is recovered. If your total income is over £35,000, you still get the payment, but it is taken back through the tax system. The government's policy statement puts a new income tax charge equal to the full value of a Winter Fuel Payment on pensioners with total income over £35,000⁵, and the legislation applies this charge for the 2025-26 and subsequent tax years¹⁸.

The threshold is based on your total individual income, not your household's combined income. Scottish Government guidance on the equivalent payment states that if a person's total individual income is over £35,000, HMRC will take the payment back through the tax system¹⁹. The charge applies to the whole payment, not just the part above £35,000: if your income is more than £35,000, HMRC will automatically take back all of your Winter Fuel Payment².

Two groups are outside the charge. First, pensioners in receipt of certain social security benefits in the qualifying week, including Pension Credit, Income Support, income-based Jobseeker's Allowance and income-related Employment and Support Allowance, and Universal Credit, are exempt regardless of their income⁵. Second, anyone can opt out of receiving the payment in the first place, which is explained below. The government estimates around 2.2 million individuals receive winter payments and have total income over the threshold, so are affected by the charge⁵.

How HMRC recovers the payment through PAYE or Self Assessment

Recovery works through the tax system, and the route depends on how you already pay tax. HMRC will automatically collect the payment through your tax code unless you already file Self Assessment tax returns¹³. For PAYE taxpayers, HMRC will adjust your tax code for the 2026-27 tax year²⁰. New regulations insert a provision into the PAYE Regulations that enables HMRC to determine and collect these liabilities through tax code adjustments during the tax year¹⁸.

The government's figures show the scale of each route. Approximately 1.3 million PAYE-only individuals will have payments automatically recovered through an amendment to their tax code⁵. For the remaining 900,000 individuals in Self Assessment, including around 800,000 who also have PAYE income, the charge will be reported and paid through the Self Assessment process⁵. If you file your Self Assessment return online, HMRC will automatically include the payment on your 2025 to 2026 return; paper filers must include it themselves¹³. The payment is due by 31 January 2027 for online filers of the 2025 to 2026 return⁸.

For around 100,000 self-employed individuals who receive winter payments and have total income above the threshold, the charge is handled through Self Assessment⁵. HMRC guidance on the collection of these liabilities through PAYE tax code adjustments has been published on the GOV.UK website¹⁸. In practice, most people do not need to do anything: the deduction appears in their tax code, or on their tax return, and the money is collected alongside the tax they already owe.

Why the payment does not reduce other benefits

The Winter Fuel Payment does not count as income when your entitlement to other benefits is worked out¹¹. So receiving it will not reduce your Pension Credit, Universal Credit, Housing Benefit or Council Tax Reduction, and it does not affect the means tests for other help.

The same protection applies on the other side of the threshold. When Pension Credit is calculated, several payments are ignored, including the Winter Fuel Payment (listed among social fund payments), Attendance Allowance, Personal Independence Payment, Adult Disability Payment, Disability Living Allowance, Child Benefit and the Christmas Bonus²¹. This matters because the £35,000 recovery test looks at your total income: benefits that are ignored for Pension Credit purposes are treated differently from taxable income such as the State Pension, private pension income, earnings, savings income and dividends.

The interaction is worth understanding if you sit near the threshold. A pensioner whose income comes mainly from Pension Credit is exempt from the charge altogether, because Pension Credit is one of the benefits that exempts you regardless of income⁵. A pensioner with a private pension, some earnings or savings income needs to look at their total income for the tax year to know whether the payment will be recovered. If you are unsure what counts towards your total, the guidance on understanding tax and your pension and the Pension Credit page set out the components.

When the payment is paid automatically and when you need to claim

Most people are paid automatically. The payment is made automatically to people who receive the State Pension, Pension Credit, Universal Credit, Personal Independence Payment, Attendance Allowance or other disability-related benefits². Payments are made automatically in November or December, into the bank account your benefits are paid into². A letter is sent in October or November telling you how much you will get¹². For the 2026 payment, Age UK reports it will be paid directly into your account between November and December 2026¹.

Not everyone is caught by the automatic system. The legislation allows the Secretary of State to pay without a claim where official records show a person appears entitled, but if the records do not show this, a claim must be made on or before the 31 March following the qualifying week⁷. Northern Ireland has the same rule, with the Department able to pay without a claim on or before 31 March following the qualifying week where a person appears entitled from official records¹⁰. If you are eligible and have not been paid by 27 January 2027, Independent Age advises contacting the Winter Fuel Payment Centre to make a claim¹².

If you need to claim, you can apply by post using the government form or by phone²². One group always needs to claim: people living abroad. If you live abroad, you will need to claim the payment by post or by phone even if you got it last year²⁰. People who deferred their State Pension may also need to apply, according to the Scottish guidance on the equivalent payment¹⁹.

1. Check whether you reached State Pension age in or before the qualifying week, the week beginning the third Monday in September⁷.
2. Wait for the letter in October or November telling you how much you will get¹².
3. If nothing has arrived by late January, contact the Winter Fuel Payment Centre to claim¹².
4. Claims must reach the Winter Fuel Payment Centre by 31 March following the qualifying week⁷.

Opting out if your income is over £35,000

If your gross taxable income is higher than £35,000, your payment is likely to be recovered later through the tax system²². Rather than receive the money and then pay it back, you can opt out of receiving the Winter Fuel Payment altogether. Those who do not wish to receive a payment may opt out either by contacting the Winter Fuel Payment Centre helpline or by using an online form on gov.uk⁶. In Northern Ireland, the online form is on nidirect.gov.uk³. Age UK gives the helpline number as 0800 731 0160¹.

There is a deadline. For the coming winter you can opt out until 23:59 on 20 September 2026⁸. The opt-out deadline for the 2025/26 payment was 15 September 2024's equivalent date, 15 September 2025², so the date shifts each year and is worth checking on gov.uk before the qualifying week ends.

Opting out is a matter of preference, not obligation. The government's policy statement is explicit that the winter payments themselves are not being made taxable and the amount received by the pensioner will not be affected⁵. Someone who opts out simply avoids the administrative loop of receiving £200 or £300 in November and having it deducted through their tax code or return the following year. Someone who does not opt out keeps the use of the money in the meantime, but it is collected later. Neither route leaves you better off in cash terms once the charge has been applied.

Where the Winter Fuel Payment does not apply: Scotland, abroad and care homes

Scotland. You cannot get a Winter Fuel Payment if you live in Scotland, but you might qualify for the Pension Age Winter Heating Payment instead²⁰. Scotland has run its own replacement since winter 2024/25, when the Winter Fuel Payment was replaced by the Pension Age Winter Heating Payment²³. A person is eligible if, during the qualifying week (the third full week in September), they are of State Pension age²⁴. Payments are made from November and continue throughout the winter¹⁹. The £35,000 recovery rule applies to the Scottish payment too: HMRC takes it back through the tax system if total individual income is over £35,000¹⁹. The Scottish winter heating payments page covers the Scottish system in full.

Abroad. If you live outside England, Wales or Northern Ireland you are not eligible for a Winter Fuel Payment²⁵. Official guidance on social security abroad states you may be entitled if you live in the EU, except Spain, Portugal, France, Greece, Cyprus, Malta or Gibraltar²⁶. The exclusion of those countries is also reflected in legislation: provisions giving entitlement to winter fuel payments to persons habitually resident in certain listed countries expired on 1 April 2025²⁷. If you do qualify from abroad, you must claim by post or phone each year, even if you were paid automatically before²⁰. The going abroad page explains how residence affects benefits generally.

Care homes and other exclusions. You are not entitled to a Winter Fuel Payment if you lived in a care home for the whole time from 29 June 2026 or earlier and you receive Pension Credit, Universal Credit or income-related Employment and Support Allowance¹. Residential care is defined tightly in the regulations: living there throughout the qualifying week and the period of at least 12 weeks ending immediately before it, disregarding temporary absences⁶. The Northern Ireland regulations also exclude the partner of someone receiving a relevant benefit during the qualifying week, people in hospital receiving free treatment for the whole qualifying week and for more than 52 weeks before it, and prisoners serving a sentence for the whole qualifying week³. The care homes and hospital or prison pages cover these rules in more detail.

Scam texts about the Winter Fuel Payment and where to get help

Scammers target the payment every winter. Which? reported that scammers use text messages to impersonate the Department for Work and Pensions, with one version telling people the winter allowance offers a one-off payment of £200 to £300²⁸. Reports spiked again and the DWP issued a warning to pensioners to be on alert for scam text messages about the Winter Fuel Payment²⁸. The key protection is simple: the government will never ask you for personal or financial information by text¹².

Fake adverts appear on social media too. Which? uncovered seven adverts on Facebook and Instagram claiming people of certain ages can receive a "winter fuel payment" of £500 or £575 per person, which is not true²⁹. Some of the ads claim people aged 41 to 55 and 56 to 65 can claim, but these groups are not eligible because the payment requires State Pension age²⁹. Other adverts claim people born between 1960 and 1990 can receive a payment, which is also untrue²⁹.

Free, impartial help is available. MoneyHelper sets out who is eligible for the Winter Fuel Payment⁹, and charities including Age UK, Independent Age, Turn2us and Carers UK publish guidance on the payment and on other help with energy bills¹. If you are struggling with heating costs, the Cold Weather Payment and Warm Home Discount pages explain the other support that exists, and checking your entitlement explains how to use free calculators to see what else you could claim. If you think a decision about your payment is wrong, the challenging a decision page explains mandatory reconsideration.