Thousands of eligible pensioners will receive a Winter Fuel Payment this year. Whether you can keep it or not depends on your taxable income, so it’s important to understand how the scheme works and what steps to take if you haven’t received your payment yet.
Understanding The Winter Fuel Payment
The Winter Fuel Payment is a government scheme designed to help older residents with the cost of heating their homes. If you live in England, Wales, or Northern Ireland and were born before 22nd September 1959, you could be eligible for up to £300 this winter. For pensioners in Scotland, a separate scheme – the Pension Age Winter Heating Payment – applies instead.
This article will guide you through how to check your eligibility and what to do if you think you qualify but haven’t received a letter yet.
How The Payment Works
If you’re eligible, you likely have already received a letter, and if not, you should expect one before the end of this month. The letter will outline how much you will receive and which bank account the money will be paid into, typically the same account used for your state pension or other benefits.
The exact payment amount is determined by your birth year and your circumstances during the week of 15th to 21st September 2025. Importantly, receiving the Winter Fuel Payment will not affect your other benefits.
If you haven’t received a letter but believe you are eligible, you can still make a claim. At Digital Tax Matters, we provide guidance to help you navigate this process efficiently.
Can You Keep The Payment?
Whether you can retain the Winter Fuel Payment depends on your total taxable income. For the tax year ending in April 2026, if your taxable income is less than £35,000, you can keep the payment. This includes income from pensions but excludes tax-free income such as interest from ISAs.
You can check your income against the threshold directly on the HMRC website. Our team at Digital Tax Matters, experienced accountants in Bedford, can also assist in reviewing your situation to ensure you understand your eligibility.
What Happens If Your Income Exceeds The Threshold?
If your taxable income exceeds £35,000, HMRC will reclaim the Winter Fuel Payment. This may happen either through an adjustment to your tax code for the 2026–27 tax year or by including it in your self-assessment tax return for 2025–26.
HMRC enforces this clawback strictly: even an excess of £1 over the threshold means the entire payment is lost. While you could opt out of receiving the payment, the deadline for doing so has already passed, which is something to keep in mind for next year.
Take Action Now
The Winter Fuel Payment can make a real difference for pensioners during the colder months. If you are eligible and haven’t received any communication yet, it’s important to act now.
Our team at Digital Tax Matters is here to support you. Contact us to book an appointment and we can help you claim your payment and ensure everything is in order.