Millions of state pensioners to get up to £300 winter fuel payment this year

Highlights

• Anyone with total income over £35,000 will have the payment clawed back by HMRC
• Payments are made automatically in November or December
• HMRC is contacting over a million pensioners about 2026/27 tax code changes to reclaim the payment

MORE THAN nine million pensioners are set to receive hundreds of pounds to help with heating costs this year through the government's winter fuel payment scheme.

The scheme is designed to help pensioners through the colder months and is available for those born before or on 1960 who live in England, Wales or Northern Ireland. Those who qualify could get between £100 and £300 to help with heating bills for winter 2026 to 2027.

But some pensioners will miss out as a result of the Department for Work and Pensions' (DWP) criteria. A person qualifies for the benefit if their total income is less than £35,000. For those with an income over this amount who receive the payment, the government has said HMRC will take back the money.

Those eligible will be paid automatically in November or December this year.

There are four other groups of people who are ineligible for the payment. This includes anyone who usually lives outside England, Wales or Northern Ireland, anyone who was in hospital for a whole week in September, anyone who needs permission to enter the UK and whose granted leave says they cannot claim public funds, and anyone who was in prison for the whole week of September 21 to 27, 2026.

Care home residents are eligible

Those who live in a care home are still eligible for the winter fuel payment, with one exception. If the individual receives universal credit, pension credit or ESA, and has lived in a care home full-time from 29 June or earlier, they are not eligible.

The government severely restricted the scheme for winter 2024 to only the lowest-income pensioners, before a U-turn last year to once again expand the provision. Rachel Reeves pulled the majority of winter fuel payments during her time as chancellor.

HMRC has begun reaching out to more than one million pensioners regarding changes to their 2026/27 tax code that will reclaim the winter fuel payment. The adjustment will see the repayment spread across the entire tax year through the PAYE system. For those under 80, this will mean a deduction of around £17 a month. For those aged 80 or over, it will be £25.

For those who complete a self-assessment tax return, the payment is now required to be included on forms. Those who file online are likely to see this added automatically.

It is now too late for pensioners who are over the £35,000 threshold to opt out, and they have until September this year to opt out for the 2027 scheme.