How winter fuel payments will be taxed from 2025/26

The UK government has confirmed a shift in how winter fuel support for pensioners will be delivered and funded.

From winter 2025/26, all pensioners in England and Wales will receive a winter fuel payment, regardless of whether they receive certain benefits.

Those with annual income above £35,000 will have the full value of this payment recovered through the tax system.

This means that:

• If a pensioner’s taxable income exceeds £35,000 HMRC will automatically reclaim the payment via PAYE or Self-Assessment.
• Payments will be £200 per household for most pensioners, and £300 where someone aged 80 or over is present.
• The payments will be shared between pensioners in a household, unless the household is already receiving certain income-related benefits.

An opt-out will be available for those who prefer not to receive the payment at all. If you have questions about how this might affect you or your family, get in touch.