Winter Fuel Payment 2026/27: the letter is coming, but for some it all goes back to HMRC

Illustration only, published .

Linda, an illustrative pensioner in Shrewsbury, opened a brown envelope this week and found good news, of a sort. A Winter Fuel Payment of £200 will land in her bank account before Christmas. She didn’t fill in a form or ring anyone. It simply turned up, as it will for most eligible pensioners in England, Wales and Northern Ireland.

What the letter doesn’t dwell on is that Linda’s income, from her State Pension and a workplace pension, comes to just over £35,000 a year. For her, the payment is closer to a short loan. HMRC will take the whole £200 back.

Who gets it this winter

You can get a Winter Fuel Payment for winter 2026 to 2027 if you were born on or before 27 June 1960 and usually live in England, Wales or Northern Ireland. What you get depends on your circumstances during the qualifying week, which ran from 21 to 27 September 2026.

Most people don’t need to claim. If you get the State Pension, Pension Credit, Universal Credit, Attendance Allowance, PIP, Carer’s Allowance or several other benefits, it’s paid automatically. Letters go out in October and November, and most people are paid in November or December 2026.

If you think you qualify but no letter arrives, you can claim by post now, or by phone from 19 October. The deadline for this winter is 31 March 2027.

How much you’ll get

The headline figures are £200 and £300, and it’s your date of birth that decides which one you get.

If you live alone, or no one you live with is eligible, you get £200 if you were born between 28 September 1946 and 27 June 1960, and £300 if you were born before 28 September 1946.

If you share a home with someone else who’s eligible, the money is split. Two people born between 28 September 1946 and 27 June 1960 get £100 each. Two people both born before 28 September 1946 get £150 each. Where one of you is older than the other, the older person gets £200 and the younger gets £100.

Couples who claim Pension Credit, Universal Credit or income-related ESA together get one payment between them, of £200 or £300 depending on their ages. People in care homes get £100 or £150.

The £35,000 line

This is the part that catches people out. If your total income is over £35,000, HMRC will take your Winter Fuel Payment back. It’s your income alone that counts. Your partner’s income doesn’t count towards your total, so a couple where one person is over the line and the other isn’t can end up with one payment kept and one recovered.

The test is your total income for the tax year before any deductions, which usually means your State Pension plus any private or workplace pensions, earnings, savings interest and rental income. GOV.UK has a checker if you’re not sure which side of £35,000 you fall.

There’s no taper. A pound over the line and the whole payment goes back.

How HMRC takes it back

For most people, HMRC collects it through your tax code. It will tell you by email or post, and the tax taken from your wages or pension each month goes up until the amount is repaid. If you fill in a Self Assessment tax return, it’s added to your tax bill instead and shows as the “Winter Fuel Payment charge”.

If HMRC is already collecting last winter’s payment, it can collect two at once. GOV.UK’s own example is a tax code change in January 2027 to start on the 2026 payment, which means roughly £30 to £33 more tax a month if your payment was £200 in both years.

For Linda, that means her pension will look a little thinner each month in the new year, not because anything’s gone wrong, but because the £200 is going back.

Can you still opt out?

Not for this winter. The opt-out for 2026 to 2027 closed in September. If your income is over £35,000 you’ll be paid and HMRC will take it back.

You’ll be able to opt out for winter 2027 to 2028 from 21 December 2026. If you know your income will stay over the line, that saves the round trip through your tax code. And if you opted out in an earlier year and now want the payment again, you can opt back in for this winter by contacting the Winter Fuel Payment Centre before 31 March 2027.

If you live in Scotland

Scotland doesn’t have the Winter Fuel Payment. Pensioners there may get the Pension Age Winter Heating Payment instead, which is run by Social Security Scotland and has its own rules. Check mygov.scot for the details.

Making the money count

If you’re keeping the payment, it’s worth deciding now what it’s for. Putting it aside against the January and February bills, when heating costs are highest, does more good than letting it disappear into a December current account. Our Budget Planner can help you see where it fits, and our Emergency Fund tool shows how far a small buffer goes.

If you’re close to £35,000, it’s also a nudge to look at your income as a whole. Our Retirement Planner can help you see how your pensions add up over the years ahead.

If you get Pension Credit, you may also qualify for the £150 Warm Home Discount. We explain who gets it automatically and who has to ask in our Warm Home Discount guide.

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Disclaimer

Linda is an illustrative example, not a real person. This article is general information and an illustration only. It is not financial or tax advice, and Money Engine is not regulated by the FCA. Check your own position on GOV.UK or with HMRC.