Winter Fuel Payment 2025: Government Expands Support for UK Pensioners with New Income-Based System
Major Changes to Winter Fuel Payment Scheme
The UK government has announced significant changes to the Winter Fuel Payment scheme for 2025/26, expanding eligibility criteria in England and Wales. While all pensioners will receive the payment, those with taxable income above £35,000 per annum who don’t receive Pension Credit will have their payment reclaimed through the tax system.
Eligibility and Payment Details
The payment will be available to everyone in England and Wales born before 22 September 1959, with payment amounts set at £200 for households including someone between State Pension age and 79, and £300 for households including someone aged 80 or over.
The £35,000 income threshold will be based on ‘taxable income,’ which includes earnings from private pensions, State Pension, employment or self-employment, and non-ISA savings interest. The assessment excludes savings within ISAs, Capital Gains, the Winter Fuel Payment itself, and tax-free state benefits like Pension Credit and Attendance Allowance.
Payment Process and Timing
For most recipients, the recovery of payments from those over the income threshold will happen automatically through PAYE via a tax code change for 2026/27. Self-employed individuals or those with high incomes will have it recovered through their 2025/26 self-assessment tax return. The government has confirmed that no additional registration with HMRC is required.
Eligible individuals will receive their payments between November and December 2025. Those who haven’t received Winter Fuel Payment before or have deferred their State Pension will need to make a claim. If payment hasn’t been received by January 2026, claims can be made until March 31, 2026.
Regional Variations and Support
While Winter Fuel Payments are a transferred matter in Northern Ireland and winter heating assistance is devolved in Scotland, it has been confirmed that pensioners in Northern Ireland will be able to receive the Winter Fuel Payment in the same way as those in England and Wales. Scotland will implement its own Pension Age Winter Heating Payment from winter 2025.
The public is warned to be vigilant as scam texts and social media posts have already emerged with fraudulent links and phone numbers attempting to get people to claim. These should be treated as scams and ignored.
