Pensioners who do not want to receive the Winter Fuel Payment this year have a limited window to opt out, according to Department for Work and Pensions (DWP) guidance. The payment is intended to help eligible older people with heating costs during the winter months.
Payments are expected to range from £100 to £300, with eligible pensioners generally receiving the money during November and December. However, people with annual income above £35,000 may have the payment recovered through the tax system.
For those who already know they will have to repay the money, opting out could avoid receiving a payment that later has to be recovered by HM Revenue and Customs (HMRC).
Deadline
The main deadline to opt out is September 20 at 11:59pm.
People who want to opt out by telephone have an earlier deadline. The DWP says phone requests must be made by 6pm on September 18.
This difference is important for anyone who plans to use the helpline rather than the online process. Waiting until September 20 to make a telephone request would be too late.
The DWP provides three routes for opting out: an online opt-out form, the online State Pension service for people receiving State Pension, and a telephone helpline.
Payment
The Winter Fuel Payment is a one-off payment designed to help with winter heating expenses.
For this winter, eligible people are expected to receive between £100 and £300, depending on their circumstances.
The DWP plans to send letters from October explaining how much eligible individuals are due. Most payments are then expected to reach bank accounts during November and December.
The qualifying age is also relevant. The payment applies to people born on or before June 27, 1960, according to the information provided.
Eligibility does not necessarily mean that every person will ultimately keep the money.
Income
One of the main changes affecting recipients is the £35,000 income threshold.
People with annual income above £35,000 may have their Winter Fuel Payment recovered by HMRC. The money is not simply returned directly to the DWP by the recipient.
Instead, HMRC can recover the amount through the tax system. For PAYE taxpayers, this can involve an adjustment to their tax code. People who complete a Self Assessment tax return may have the amount added to their tax calculation.
The DWP states that if someone does not opt out and their total income is above £35,000, they will receive the payment but HMRC will recover it.
Opting
Pensioners who do not want to receive the payment can opt out before the applicable deadline.
The online opt-out form is available through the government’s Winter Fuel Payment guidance. The deadline for the online form is September 20 at 11:59pm.
People receiving State Pension can also use the online “Manage your State Pension” service to opt out.
A telephone option is available through the Winter Fuel Payment helpline at 0800 731 0160. However, telephone requests must be completed by 6pm on September 18.
A National Insurance number is required when using the online form or telephone service.
Choice
Opting out is not necessarily a permanent decision.
Once someone opts out, they will not receive the Winter Fuel Payment in future years unless they opt in again. The DWP says people can subsequently opt in by contacting the Winter Fuel Payment Centre.
This means pensioners should consider whether their circumstances are likely to change before deciding to opt out.
For someone whose income is consistently above £35,000, avoiding the initial payment may be preferable to receiving it and having HMRC recover the money later. Someone whose income could fall below the threshold may instead decide that receiving the payment is appropriate.
Recovery
The tax recovery process means some pensioners may prefer not to receive a payment that they know they will have to repay.
The figures illustrate why the issue can matter over the course of a tax year. HMRC previously estimated that around two million people would need to repay their Winter Fuel Payment because their annual income exceeded £35,000.
For a typical £200 Winter Fuel Payment, HMRC said PAYE taxpayers with income above £35,000 could pay approximately £17 more in tax each month during the 2026-27 tax year as the payment is recovered.
The exact effect depends on an individual’s circumstances and tax position.
Action
Pensioners considering opting out should check their eligibility, expected income and preferred method of making the request before the deadline.
Those using the telephone need to act by September 18 at 6pm, while online opt-outs can be made until September 20 at 11:59pm.
The key point is that eligible pensioners do not have to accept the Winter Fuel Payment if they do not want it. However, opting out also affects future payments unless they later choose to opt back in.
For anyone expecting annual income above £35,000, understanding the recovery process before the payment arrives can help avoid an unexpected tax adjustment later in the year.
