2025 winter fuel payments may be subject to clawback

For winter 2025, winter fuel payments of between £100-£300 will be paid automatically to those in England, Wales and Northern Ireland born before 22 September 1959.

In Scotland, individuals may be eligible for the pension age winter heating payment instead, which means a possible payment of between £101.70-£305.10. Eligibility is based on being born on, or before, 21 September 1959.

However, those with total income for tax purposes of more than £35,000 will see the full payment clawed back.

If your total taxable income for 2025/26 exceeds £35,000 and you currently file self assessment tax returns, the payment will be recovered automatically by HM Revenue & Customs (HMRC) via your 2025/26 tax return.

Alternatively, for affected individuals who are not currently within the self assessment regime, HMRC will recover the payment through an adjustment to your 2026/27 PAYE code.

Instead of being subject to a clawback, individuals with income exceeding £35,000 can opt out of receiving the payment altogether. For those in England, Wales and Northern Ireland, this is done by contacting the Winter Fuel Payment Centre by telephone or by post. The deadline for doing so regarding the winter 2025 payment is 15 September 2025. The Scottish government is expected to provide more information on opting out in due course.

If you opted out because you expected to exceed the £35,000 threshold but your actual income falls below it, you have until 31 March 2026 to opt back in to receive the payment. A review of your 2025/26 income levels may be worthwhile prior to 31 March 2026 if you believe that you will be close to the £35,000 threshold.

If you’re unsure about what (if anything) you need to do next, our specialist team is here to help. Please get in touch with your usual Azets adviser or a member of our specialist team via the form below.