HM Revenue and Customs (HMRC) has issued important guidance for state pensioners regarding the tax treatment of this year's Winter Fuel Payment. The tax authority has confirmed that recipients do not need to include the 2025 Winter Fuel Allowance on their tax return for the 2024 to 2025 tax year.
Key Details and Reporting Timeline
According to an update on the Labour Party government website, the payment received in Autumn 2025 will instead be accounted for in the following tax cycle. Specifically, the guidance states that payments will be recovered in the 2025 to 2026 tax return, which is due by 31 January 2027. This rule also applies to the Pension Age Winter Heating Payment for those living in Scotland.
Eligibility Criteria and Exclusions
While many pensioners receive the payment automatically, certain conditions affect eligibility. You will not be eligible for the Winter Fuel Payment if, during the qualifying week of 15 to 21 September 2025, any of the following applied:
- You lived outside England and Wales.
- You were in hospital receiving free treatment for the entire week and for the same week the previous year.
- You were in prison for the whole week.
- Your UK immigration permission explicitly states you cannot claim public funds.
For those living in a care home, you can still get the payment. However, you become ineligible if both of these apply: you receive a qualifying benefit like Pension Credit or Universal Credit, and you lived in the care home for the whole period from 23 June 2025 or earlier.
Automatic Payments and How to Claim
Most eligible individuals receive the Winter Fuel Payment automatically, particularly if they get any of the following benefits:
- State Pension or Pension Credit
- Attendance Allowance or Personal Independence Payment (PIP)
- Universal Credit, Income Support, or Carer’s Allowance
- Disability Living Allowance (DLA) or certain war and industrial injury benefits
If you do not receive any of these benefits, you will need to make a claim if either you have never received the Winter Fuel Payment before, or you have deferred your State Pension since your last payment.
This clarification from HMRC aims to prevent confusion and ensure pensioners correctly report their income, providing certainty ahead of the upcoming tax deadline.
