Background
Last year the government reinstated winter fuel payments for all pensioners in England and Wales with an income of £35,000 or less per annum. For winter 2026/27, eligible pensioners will be due to receive the winter fuel payment from November 2026.
The tax-free payments will automatically be made to all pensioners and so those pensioners whose annual income exceeds £35,000 will have their winter fuel payment recovered through the pay as you earn (PAYE) system or, if necessary, through self-assessment, unless they choose to opt out of receiving the payment in order to avoid having to repay it.
For those pensioners who wish to opt out of receiving the winter fuel payment for 2026/27, then they will need to take action this week.
Detail
For 2026/27, winter fuel payments in England and Wales will be £200 for households which include someone between state pension age and 79, and £300 for households which include someone aged 80 or over. The payment will be shared by the pensioners in the household where the household is not in receipt of an income-related benefit. The payment will be recovered from individuals based on their own taxable income. As last year, Scotland and Northern Ireland will have their own systems.
The winter fuel payments will again be made automatically to all pensioners with no need for anyone to register with HMRC for this purpose or take any further action.
For those pensioners with incomes above the £35,000 threshold, HM Revenue and Customs (HMRC) will, as last year, automatically recover the full amount of the winter fuel payment they have received either via the PAYE system or via their self-assessment tax return.
From April 2027, HMRC will start collecting winter payments through the PAYE tax code in advance during the year in which they are paid. This may mean that someone who receives 2026/27 and 2027/28 winter payments will pay back both at the same time.
HMRC’s online tool can be used to check if and how the payment will be recovered.
Opting out of receiving the payment
An individual can opt out of receiving the winter fuel payment, and for taxpayers with income in excess of £35,000, this may be simpler than receiving the payment and having it recovered through the tax system.
Pensioners wishing to opt out of receiving the payment for winter 2026/27 should do so by:
- 6pm on 18 September 2026 for pensioners in England, Wales or Northern Ireland who wish to opt out by calling HMRC’s helpline on 0800 731 0160 (see HMRC’s guidance for alternative contact details and a summary of the information HMRC will ask for);
- 11:59pm on 20 September 2026 for pensioners in England, Wales or Northern Ireland who wish to opt out by using the manage your state pension service or by completing the opt out form; and
Once an individual has opted out for one year, they will not receive payments for future years unless they opt back in. This means that, if you opted out of receiving the payment for winter 2025/26, you will not automatically receive the payment for winter 2026/27, and so do not need to opt out again.
Opting back in
An individual who previously opted out and wishes to opt back in in order to receive the winter payment for 2026/27 must do so by 31 March 2027. The guidance on GOV.UK (England, Wales and Northern Ireland) explains how to do this.
If you would like more information on the points raised above, or how the winter fuel payments may impact you please speak to our Tax Director, Jenny Marks.
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