Letters about this year’s Winter Fuel Payment are dropping through letterboxes all over the country after the government reversed a decision to withdraw it for many last year.
Every pensioner will receive the winter fuel payment for 2025–26 – but some will have to repay it if they earn more than £35,000.
Around nine million pensioners are expected to be eligible for the payment this winter. Those born on or before 21 September 1959 will receive £200, while households with someone aged 80 or over on that date will get £300. The payment is made per household rather than per person – so a couple and a single pensioner of the same age both receive the same amount.
No one needs to apply for the payment as it will be paid automatically, and the Government is warning pensioners to be on the alert for scam text messages claiming otherwise.
The payment will be clawed back next April from any pensioner whose income exceeds £35,000. The threshold includes income from pensions, employment, property, savings interest and dividends, but not ISA withdrawals or inheritances. The repayment will be made through tax code adjustments or self-assessment.
This means that in a couple where both are under 80, each will receive £100 – but if one or both earn above £35,000, their share will be reclaimed. For example, a couple both aged 82 would lose half their £300 payment if one earns £38,000 and the other £12,000, but would keep it all if both earned £25,000.
Pensioners on low incomes are being reminded to check if they qualify for Pension Credit, worth around £4,000 a year and unlocking other valuable benefits.
Find out more here.