The Winter Fuel Payment is an automatic benefit for most pensioners who meet the age and residency requirements.
For the winter of 2025 to 2026, the government confirmed that the payment will be recovered through the tax system if an individual’s personal taxable income is over £35,000 for the financial year.
To avoid receiving the payment and facing this tax recovery process later, you have the option to opt out of the payment entirely.
The process is straightforward but time sensitive.
Why would someone choose to opt out of the payment?
The main reason for choosing to opt out of the Winter Fuel Payment is to avoid the administrative process of having the money recovered by HM Revenue and Customs, or HMRC, through the tax system.
- Tax Recovery: If your personal taxable income is over £35,000, the payment will be reclaimed. For most people, this is done by adjusting their Pay As You Earn, or PAYE, tax code for the following tax year, starting in April 2026. This means you would effectively pay it back in monthly instalments.
- Self Assessment: If you complete a Self Assessment tax return, the payment amount will be added to your total income for the 2025 to 2026 tax year, and you will pay it back through your tax bill.
- Simplicity: For pensioners with income comfortably above the £35,000 threshold, opting out simply avoids the complexity and paperwork associated with the tax recovery process.
What is the deadline for opting out?
The DWP applies a strict deadline for opting out of the payment for the current winter season.
Missing this date means you will receive the payment automatically and will then be subject to the tax recovery process if your income exceeds the threshold.
- Opt Out Deadline: The deadline to opt out of the Winter Fuel Payment for the winter of 2025 to 2026 has already passed (it was typically 14 or 15 September 2025).
If you missed this deadline, you will receive the payment automatically in November or December 2025 and will then have the money recovered by HMRC later if your taxable income is over £35,000.
How do I opt out of the Winter Fuel Payment?
Since the opt out deadline for the current year has passed, this process now applies to future Winter Fuel Payments.
You must use the official government channels.
The steps to opt out are:
- Contact the Winter Fuel Payment Centre: You must contact the payment centre either by telephone or by post. You cannot opt out through your online tax account.
- Provide Personal Details: You will need to provide your personal details to identify your record. This includes your full name, address, date of birth, and National Insurance number.
- State Your Request: Clearly state that you wish to opt out of receiving the Winter Fuel Payment for the current and all future years.
If you opt out, the DWP will stop sending you the payment in subsequent years unless you specifically contact them again to opt back in.
Can I opt back in if my circumstances change?
Yes, if you have previously opted out and your circumstances change, for example, your income drops below the £35,000 threshold, you can choose to receive the payment again.
- Contact the Payment Centre: You must contact the Winter Fuel Payment Centre by phone or post to inform them that you wish to opt back in.
- Claim Deadline: To receive a payment for the current winter season, you must contact them before the final claim deadline, which is typically 31 March of the current payment year.
What if I live in Scotland?
If you live in Scotland, you do not receive the DWP’s Winter Fuel Payment.
Instead, you receive the Pension Age Winter Heating Payment from Social Security Scotland.
- Opt Out Process: You can also opt out of this payment by contacting Social Security Scotland by phone.
- Future Payments: If you opt out of the Scottish payment, you will not receive it in future years unless you contact Social Security Scotland to opt back in.
