Millions of pensioners across England, Wales and Northern Ireland are due to receive help with heating costs through the Winter Fuel Payment for winter 2026 to 2027. Eligible people could receive between £100 and £300, with payments expected to be made automatically later this year.
However, not every pensioner will keep the full payment. The Department for Work and Pensions (DWP) has set eligibility rules, while HM Revenue and Customs (HMRC) will reclaim payments from people whose total income is above the relevant threshold.
The changes mean pensioners should check both their eligibility and their tax position before assuming the payment will remain in their bank account.
Eligibility
The Winter Fuel Payment is available to qualifying pensioners who live in England, Wales or Northern Ireland and were born on or before the relevant qualifying date for the 2026 to 2027 winter.
Eligible recipients can receive between £100 and £300, depending on their circumstances, including their age and household situation.
Unlike some means-tested benefits, people do not generally need to make a separate application if the DWP already has the information needed to identify them. Eligible pensioners are expected to receive their payments automatically in November or December 2026.
Income
One of the most important changes for 2026 is the income rule.
Pensioners with total income above £35,000 can still receive the Winter Fuel Payment initially, but HMRC will reclaim the amount through the tax system. In effect, the payment is available but may ultimately be recovered if the person’s income exceeds the threshold.
This arrangement means some higher-income pensioners could see a Winter Fuel Payment arrive in their account and later have the amount collected through PAYE or Self Assessment.
HMRC has started contacting more than one million pensioners who fall into this category about changes to their 2026/27 tax codes.
Deductions
For pensioners whose tax is collected through PAYE, HMRC is expected to spread the repayment across the tax year rather than taking the entire amount at once.
The adjustment could mean deductions of around £17 a month for people under 80 and about £25 a month for those aged 80 or over, depending on the amount being reclaimed and their circumstances.
This approach is designed to recover the payment through regular tax deductions. The exact amount deducted can vary based on an individual’s tax position.
Pensioners who complete a Self Assessment tax return will also need to account for the Winter Fuel Payment. For people filing online, the payment may already be included in the relevant information.
Exclusions
There are several circumstances in which a person may not qualify for the 2026 Winter Fuel Payment.
A pensioner may be excluded if they usually live outside England, Wales or Northern Ireland. Other exclusions apply to people who were in hospital for the whole of the relevant week in September, people whose UK immigration conditions prevent them from claiming public funds, and people who were in prison for the entire week from Sept. 21 to Sept. 27, 2026.
These rules mean that reaching the qualifying age alone does not guarantee a payment.
The DWP considers a person’s circumstances during specific periods when determining eligibility, so changes in living arrangements or residence can affect entitlement.
Carehomes
People living in care homes can still qualify for the Winter Fuel Payment, although there is an important exception.
A person generally will not qualify if they have been living in a care home full-time since June 29, 2026, or earlier and receive certain benefits, including Universal Credit, Pension Credit or Employment and Support Allowance.
This rule is separate from the general eligibility requirements and means care home residents should consider both their living arrangements and the benefits they receive.
Changes
The Winter Fuel Payment rules have changed significantly in recent years.
The government restricted the scheme for winter 2024 so that it was primarily targeted at pensioners receiving certain means-tested benefits. The policy was subsequently changed, expanding eligibility again for the following winter.
For 2026 to 2027, the payment is again available to a broader group of qualifying pensioners, although the £35,000 income rule means some higher-income recipients will have the money recovered through taxation.
For pensioners who are above the income threshold, it is now too late to opt out of the 2026 payment. However, the government has indicated that people can opt out of the 2027 scheme until September 2026.
Payments
For most eligible pensioners, the Winter Fuel Payment should not require a separate claim. Payments are expected to be made automatically in November or December 2026.
The amount can range from £100 to £300, with the exact figure determined by the applicable rules and the recipient’s circumstances.
Pensioners who receive the payment should therefore distinguish between receiving the money and ultimately keeping it. For people with income above £35,000, HMRC’s recovery process can result in the payment being collected through the tax system.
The Winter Fuel Payment remains an important source of support for eligible households facing higher heating costs during the colder months. But the 2026 rules make it important for pensioners to understand the income threshold, exclusions and tax-recovery arrangements rather than relying only on their age or receipt of the initial payment.
