Deadline Set For Over-66s To Opt Out Of Winter Fuel Payment – DWP Confirms

The Department for Work and Pensions (DWP) has confirmed that pensioners aged over 66 in England, Wales, and Northern Ireland have until 15 September 2025 to opt out of the Winter Fuel Payment.

This move follows a policy reversal that expanded payment eligibility to around 9 million pensioners, but also introduced a means-tested income threshold of £35,000 per year.

The payment amount is £200 for those under 80, rising to £300 for individuals aged 80 and over. Pensioners earning above the threshold will receive the payment, but it will be recovered later via HMRC, unless they opt out in advance.

Winter Fuel Payment: Who Gets It and When

This annual, tax-free lump sum is automatically sent to those who meet eligibility criteria. Key factors include:

• Age: Born on or before 22 September 1959.
• Residence: Must be living in UK during the qualifying week (15–21 September 2025).
• Income: Must be under £35,000 taxable income to retain the payment without repayment.

Payments are usually received in November or December 2025. Those in Scotland are excluded, as they have a separate Pension Age Winter Heating Payment system.

Opt-Out Deadline and Clawback Process

Pensioners earning over £35,000 can opt out by 15 September 2025 to avoid automatic repayment. If they don’t:

• PAYE taxpayers: HMRC will recoup the full payment via tax code adjustments in the 2026/27 tax year.
• Self-assessment filers: The amount will be added to their 2025/26 tax return.

Detail	Information
Opt-out Deadline	15 September 2025
Age Eligibility	Born on or before 22 September 1959
Payment Amount	£200 (under 80) or £300 (80+)
Income Threshold	£35,000 taxable annual income
Recovery Process	PAYE tax code adjustment or self-assessment
Payment Timing	November–December 2025
Scottish Residents	Not eligible for this; see separate heating support scheme

Why This Matters

This opt-out deadline is critical because:

• Even if your income exceeds £35,000, you’ll initially still receive the payment—but repayment is then forced unless you opt out.
• The clawback is automatic—no action results in recovery via your tax code or return.
• Awareness ensures you retain control—if you’d rather avoid the repayment hassle, opting out early is the simplest route.

What You Need to Do

1. Estimate your taxable income for 2025/26 (include private pensions, savings interest).
2. If it’s above £35,000, consider opting out by 15 September 2025.
3. Opt out via the official online form or the Winter Fuel Payment Centre, by phone or mail.
4. If opting in, expect to see the payment in your bank account around November or December.
5. If not opting out and your income is high, prepare for the recovery through PAYE or self-assessment.

Avoiding Scams

Be cautious of scams. DWP and HMRC will never ask for personal or bank details via email or text to process Winter Fuel Payment queries. Always contact the Winter Fuel Payment Centre directly or use official channels.

The 15 September 2025 opt-out deadline for the Winter Fuel Payment is fast approaching—pensioners earning above £35,000 must act to avoid automatic repayment through their tax codes or returns.

Whether to keep the £200/£300 payment or opt out for simplicity is a personal choice, but early action ensures control and clarity during this winter’s cost-of-living challenges.

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