Under new rules, more pensioners are now eligible for the Winter Fuel Payment in England, Wales, and Northern Ireland, and the Pension Age Winter Heating Payment in Scotland.

Where taxable income is more than £35,000, however, HMRC will seek to recover any payment received. Recovery will be made by adjustment to the tax code for 2026/27, or via the Income Tax self assessment tax return for 2025/26. For many people, these additional processes may be an unwelcome inconvenience.

As payments are usually made automatically to those eligible, you have to opt out of payment to avoid the payment and claw back process. Deadlines apply for the opt-out process, however, and for this year, these have now passed in all parts of the UK. This unfortunately means that unless there is a last-minute rethink at HMRC, anyone who has not opted out already will fall into the payment and recovery cycle as regards winter 2025/26.

As regards the future, the first year you can now opt out of is 2026/27. If you live in England, Wales or Northern Ireland, you will be able to opt out for 2026/27 and subsequent years from 1 April 2026. If you live in Scotland, you can apply to opt out now, using an online form accessed via mygov.scot. This, however, will only impact payment from winter 2026/27 onwards.