Introduction

As energy costs remain high and inflation continues to affect households across the UK, the Winter Fuel Payment scheme returns for the 2025-2026 season, providing essential financial support to millions of pensioners to help with heating costs during the colder months.

Key Changes and Eligibility

The government has announced significant changes for winter 2025/26, restoring the Winter Fuel Payment to all people over state pension age with an income of £35,000 per year or less. To qualify, individuals must be born on or before 21 September 1959. Importantly, the £35,000 threshold applies to individuals and does not include partner’s income.

Payment Structure

For 2025/26, payments in England and Wales will be structured as follows:
– £200 for households including someone between State Pension age and 79
– £300 for households including someone aged 80 or over
Where the household is not receiving an income-related benefit such as Pension Credit, payments will be shared – for example, a couple both under 80 and not on Pension Credit will receive £100 each.

Payment Process and Timing

Eligible individuals receiving certain benefits or State Pension will receive automatic payments between November and December. Those not receiving qualifying benefits may need to claim manually through the Winter Fuel Payment Centre. If payment hasn’t been received by 31 December 2025, recipients should contact the centre at 0800 731 0160.

Tax Recovery System

For those with incomes above the threshold, the payment will be recovered by HMRC based on individual taxable incomes. There will be no need for household incomes to be combined. Recovery will occur via PAYE for most recipients, or through Self-Assessment tax returns for others. HMRC is working with representative bodies to ensure a simple process with clear guidance for taxpayers.

Regional Variations

While the Winter Fuel Payment applies to England, Wales, and Northern Ireland, Scotland operates its own Winter Heating Payment scheme through Social Security Scotland, offering a £55.05 annual payment to low-income households. The Scottish Government faces pressure to align with the UK’s approach, particularly for rural areas experiencing harsh winters.