News and insights from the Verallo team
Winter fuel payment update – Opt-out deadline approaching
From winter 2025/26, all pensioners in England and Wales will automatically receive the Winter Fuel Payment, a tax-free, one-off payment to support heating costs during colder months.
What’s Changing?
While the payment itself remains unchanged, the way it is treated for higher-income pensioners is different.
If your total income exceeds £35,000, HMRC will recover the full amount of the payment through the tax system:
- PAYE taxpayers will see the recovery reflected in their 2026/27 tax code.
- Those completing a Self-Assessment tax return must declare the payment in their 2025/26 return, and HMRC will recover it accordingly.
Opting out
If you prefer not to receive the Winter Fuel Payment and avoid recovery via the tax system you can opt out. The deadline to do so is 15 September 2025.
You can opt out:
- Online via HMRC’s website
- By calling HMRC
- Or by writing to them directly
Need Support?
If you’re unsure how the changes apply to you, or whether opting out is the right move, we recommend speaking to your Verallo adviser.
For more information or personalised advice, get in touch.