After being means-tested for the first time in 2024, the winter fuel payment will be coming back this year for eligible state pensioners in England and Wales.
But what is the eligibility criteria this time? Keep reading to find out!
What is the Winter Fuel Payment?
The winter fuel payment is a state benefit paid once a year in England and Wales.
The payment is essentially a government heating allowance, paid by the government to those born before a specific date, in order to cover additional heating costs during the winter.
Who is Eligible For the Winter Fuel Payment?
Here’s what we know so far about the eligibility criteria for this year’s winter fuel payment:
- State pensioners must be born on or before 21st September 1959 to receive the automatic £200 or £300 payment (the £300 payment is given where there is a person in the household born on or before 21st September 1945, i.e. aged 80 or over).
- If a state pensioner earns £35,000 or over during this tax year (2025/26), their portion of the payment will be clawed back through the tax system. This will happen automatically via a change in their tax code at the start of the next tax year (2026/27). If you are self-employed and file your own self-assessed tax returns, the payment will be clawed back through that. This will happen after the end of the tax year (April 2026).
- For state pensioner couples, the payment is usually split equally between you. If one of you earns over £35,000, your half of the payment will be clawed back through tax. If the other earns under the threshold, you will still receive your half of the money.
- For state pensioner couples who claim Pension Credit, there is no 50/50 split. You’ll get £200 (or £300 if one of you is aged 80+) in one lump sum. The tax clawback will not affect you.
Remember: You do not need to do anything to get the winter fuel payment as everyone who gets a state pension will receive it automatically. Watch out for scam texts, social media messages or emails – don’t click any suspicious links or call any numbers given to you.
When Will the Winter Fuel Payments Be Made?
The government usually makes winter fuel payments during November or December, although they have not yet confirmed when they will be made this year.
Can I Opt Out?
Yes, an opt-out will be introduced. This will be particularly useful for those who know they earn over the £35,000 threshold, as they can simply choose not to receive the payment instead of having it clawed back through tax.
If you opt out but your financial circumstances change, you will be able to opt back in as long as you do this before the end of the tax year.
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