The Winter Fuel Payment is a familiar part of the support many older people receive each year. It is designed to help with heating costs over the colder months and is paid as a tax-free lump sum. However, the rules have changed in recent years, and the payment is no longer a universal benefit. It is now influenced by household income and by where the person lives within the UK. For clients approaching or already in retirement, it is important to understand how the payment works and what has changed for the winter of 2025 to 2026.
Who can receive the Winter Fuel Payment
The payment applies to individuals who were born on or before 21 September 1959. To qualify, the person must also have been living in England or Wales during the qualifying week, which for the 2025 to 2026 winter is the week beginning 15 September 2025.
If a person is already receiving the State Pension or certain other benefits, the payment is usually made automatically. Those who defer their State Pension, or who do not receive any of the qualifying benefits, may need to submit a claim. The deadline for claims for this winter is expected to be 31 March 2026.
It is important to note that Scotland now operates a different system. The Winter Fuel Payment does not apply in Scotland. Instead, there is a Scottish Pension Age Winter Heating Payment, and the eligibility criteria and application method differ. Clients who have moved or who spend parts of the year in different regions should check that their residency is clear for the qualifying week.
How much is paid
The standard payment is £200 for households where the eligible person is under 80 years old at the qualifying date. If the person is aged 80 or above, the payment rises to £300. Only one payment is made per household, determined by the age of the oldest qualifying resident.
Income testing and recovery of payments
The major change now in place is the income test. The payment is still made to most eligible people, but if the person’s taxable income exceeds £35,000 per year, the payment will be reclaimed through the tax system. In practice, this means that the person may receive the payment in November or December, but will see their tax code adjusted later, or the recovery will be carried out through the Self-Assessment process.
For clients whose income fluctuates around the threshold, it may be sensible to review the timing of pension withdrawals or other income sources. The threshold applies to taxable income, so private pensions, savings interest, rental income and employment income are all relevant
