Date posted: 3rd Sep 2025
Earlier this year, the Government reversed their original announcement that WFP would only be available to pensioners on certain benefits and confirmed that WFP will be made to all pensioners.
However, where a pensioners income exceeds £35,000 (a cliff edge limit), HMRC will recover the WFP via PAYE or self assessment.
To avoid unnecessary complications for those already earning over £35,000, pensions can opt out of claim WFP by completing the form at https://submit.forms.service.gov.uk/form/7964/opt-out-of-winter-fuel-payment/29643 – this will need to be actioned by 15 September 2025.
The situation is a little more complicated for couples compared to individuals living alone as the WFP is split evenly between the couple, so there could be a situation where one person in the household repays their half of the WFP and one does not, as it will depend upon their individual income.
If you do not already complete a tax return, there will be no reason to register for Self Assessment to notify HMRC of the amounts to be repaid as they should deal with this via the PAYE tax system. If you already complete a tax return and have opted to retain the WFP, you will need to declare this to HMRC on your 2025/26 tax return.
Finally, there are many scams already being perpetrated in relation to WFP so please be careful if you receive unsolicited or unofficial text messages, emails or letters regarding repayments of WFP.
As ever, we are here to help so contact us today.
