Winter Fuel Payment: opt-out deadline approaching

The deadline is approaching for pensioners who want to opt out of receiving their 2026/27 Winter Fuel Payment.

Eligible pensioners can receive between £100 and £300, depending on their circumstances.

However, where an individual’s total income is more than £35,000, the Winter Fuel Payment is recovered through the tax system.

For those who expect their income to exceed this threshold, opting out means they can choose not to receive the payment in the first place.

When is the opt-out deadline?

For the 2026/27 Winter Fuel Payment, the deadlines are:

• Online or using the opt-out form: 11:59pm on 20th September 2026
• By telephone: 6pm on 18th September 2026

You will need your National Insurance number to opt out.

How is the payment recovered?

If you receive the Winter Fuel Payment and your individual income is above £35,000, HMRC will recover an amount equivalent to the payment through the tax system.

The process depends on how you pay Income Tax. If you are taxed through PAYE, HMRC will normally adjust your tax code so that additional tax is collected. If you complete a self-assessment tax return, the charge will generally be included in your tax calculation.

The Winter Fuel Payment itself is not treated as taxable income. Instead, a separate Income Tax charge equivalent to the amount of Winter Fuel Payment received is applied.

It’s also worth remembering that the £35,000 threshold applies to individual income, rather than household income. Your partner’s income is not included when determining whether you exceed the threshold.

A useful reminder

With the opt-out deadline approaching, it’s worth checking your expected income for the year and considering whether you want to receive the Winter Fuel Payment.

Understanding how the payment and any associated tax charge will affect you can help you make an informed decision before the deadline.

If you’re unsure how the rules apply to your circumstances, get in touch with our tax team.