State pensioners born before 1960 are being urged to reject payments from the Department for Work and Pensions (DWP). Bonus payments in the form of the Winter Fuel Allowance are due to be paid out in 2026 to 2027 again.
If you were born before 28 June 1960 you could get between £100 and £300 to help you pay your heating bills for winter 2026 to 2027, the DWP says. But HMRC will claw it back from retirees who earn £35,000 or over.
Government advice on opting out
Labour Party Pensions Minister Torsten Bell explained: "Anyone who expects their total income to exceed £35,000 can opt out of receiving future payments via GOV.UK, or through Social Security Scotland if they live in Scotland, and will not be subject to the charge. Opting out applies only to payments not yet made."
Money Saving Expert's guidance
Money Saving Expert, the site founded by BBC and ITV star Martin Lewis, said: "In 2025, the Government confirmed the Winter Fuel Payment would be reinstated for all pensioners from for winter 2025/26, though those earning over £35,000 a year will have the payment reclaimed automatically, unless you opt out."
The 52-year-old's team advise: "To opt out, you need to call the Winter Fuel Payment Centre on 0800 731 0160 or complete the online opt out form. You'll need your National Insurance number. The deadline for this winter's payment is 20 September 2026. Alternatively you can opt out by calling the helpline before 6pm on 18 September 2026. If you don't opt out in time, and earn over £35,000 a year, you'll have your Winter Fuel Payment clawed back through your PAYE or tax self-assessment. Once you have opted out, you won't receive any future Winter Fuel Payments unless you opt back in."
Chancellor's justification
Chancellor of the Exchequer Rachel Reeves said: "Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest."
