Millions of UK pensioners are set to receive letters from the Department for Work and Pensions (DWP) confirming changes to the Winter Fuel Payment for 2025–26. The update comes as the government introduces a new income threshold of £35,000, meaning those who earn above the cap may have to repay their fuel support.

According to The Independent, the payment will still be issued automatically to those aged 66 and above between November and December. However, pensioners with higher incomes will see the money reclaimed by HM Revenue and Customs (HMRC) via the tax system.

How Much Will Pensioners Receive This Winter?

The Winter Fuel Payment will range between £200 and £300, depending on age and household circumstances. Pensioners under 80 can expect £200, while those aged 80 or over will receive £300.

Lancs Live reports that the qualifying week for this year was 15–21 September 2025. Eligibility depends on age and benefit status during that period.

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Will the £300 Be Deducted Directly from Bank Accounts?

Contrary to fears, HMRC will not directly remove money from pensioners’ bank accounts. Instead, repayments will be handled through:

• PAYE (Pay As You Earn): via adjusted tax codes from April 2026.
• Self Assessment: for those who already file tax returns.

BBC journalist Dan Whitworth told Radio 4 Money Box that the process will spread repayments into monthly instalments across the 2026–27 tax year, reducing the financial shock.

Who Will Have to Repay Their Winter Fuel Payment?

• Pensioners with annual taxable income over £35,000.
• Around 2 million people fall into this category, according to The Independent.
• Nearly 7.4 million pensioners will remain eligible without repayment.

This change means that some who receive the payment will later see it reclaimed through taxes, effectively reducing their long-term benefit.

Why the DWP Is Sending Out Letters

The DWP has confirmed it will send letters in October and November to all eligible pensioners, outlining how much they’ll receive and clarifying repayment rules.

According to Lancs Live, these letters will prevent confusion and help households understand whether they need to take action. For most, no action will be required, the repayment process will happen automatically.

The Bigger Picture: Rising Costs and Fuel Poverty

The changes come amid a backdrop of soaring energy bills and inflation, putting added strain on older households. The House of Commons Library notes that supply chain issues and rising demand during colder months have worsened fuel poverty.

Advocates warn that while the Winter Fuel Payment is meant to ease hardship, reclaiming funds from middle-income pensioners could leave some struggling to keep homes warm this winter.

FAQ

Q1. Will HMRC take £300 directly from my bank account?

No. HMRC will not remove funds from your bank account. Repayments will be handled through tax codes (PAYE) or added to your Self Assessment tax return.

Q2. How much will pensioners get from the DWP Winter Fuel Payment in 2025?

Most households will receive between £200 and £300. Pensioners under 80 will get £200, while those aged 80 or older will receive £300 (BBC).

Q3. Who needs to repay the Winter Fuel Payment?

Pensioners with annual taxable income above £35,000 will need to repay the support through the tax system.

Q4. When will the repayments start?

Repayments will begin in April 2026 and continue throughout the 2026–27 tax year. HMRC will adjust tax codes so that repayment happens gradually.

Q5. How will Self Assessment pensioners repay the money?

If you file Self Assessment, HMRC will add the Winter Fuel Payment to your 2025–26 tax return. The repayment is due by 31 January 2027.

Q6. Do all pensioners need to take action?

No. The vast majority of pensioners will not need to do anything. Payments will be issued automatically, and HMRC will handle recovery for those over the income limit.

Q7. Can I opt out of the Winter Fuel Payment?

Yes. From April 2026, pensioners who know they exceed the £35,000 threshold can choose not to receive the payment, according to HMRC guidance.

Q8. When will DWP send out letters?

The DWP will send out letters in October and November 2025 confirming how much each eligible pensioner will receive.

Q9. What is the qualifying week for Winter Fuel Payment 2025?

The qualifying week was 15–21 September 2025. You must have been born before 22 September 1959 and meet income conditions to qualify.

Q10. Why is the government reclaiming these payments?

The repayment policy is designed to target support toward lower-income pensioners while still issuing the payments quickly. The system avoids delays but has raised concerns about fairness.