𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Fresh figures reveal that over 2.2 million individuals are expected to face repayment of their Winter Fuel Payments. The Department for Work and Pensions has today published new data demonstrating the number of recipients following the payment’s restoration for millions last year.

During the previous winter, 10.9 million people received between £100 and £300 towards heating costs. This represented a significant increase from 1.3 million the previous year, when eligibility was restricted to Pension Credit recipients only.

However, DWP estimates indicate that millions will be required to reimburse the payment. Anyone earning above £35,000 in taxable income who fails to decline the payment will face repayment through taxation.

As a result, recipients of £200 will be repaying at approximately £17 monthly. From April 2027 onwards, however, HMRC will begin recovering Winter Fuel Payments in advance via PAYE within the same tax year of distribution.

This means some individuals could effectively face double repayments – for instance, someone who received £200 of winter fuel payment in 2025/26 and another £200 in 2026/27 may witness their monthly tax rise by roughly £30 to £33 while both payments are being recovered from January 2027. Individuals could sidestep this situation by declining the payment altogether – however, fresh statistics revealed that 53,000 pensioners opted-out from receiving a WFP for winter 2025 to 2026.

It added: “A HMRC impact assessment estimates that 2.2 million pensioners (including those from Northern Ireland) would be impacted by recoveries.”

Consumer specialist Rebecca Wilcox informed BBC Morning Live audiences earlier this year that anyone with taxable income exceeding £35,000 might wish to decline the 2026 Winter Fuel Payment or risk repaying approximately ‘£33 each month’ back.

She cautioned that from April, millions of households are being contacted by HMRC and informed they may be required to reimburse their Winter Fuel Payment. She further explained that some individuals may prefer to take preventative measures to avoid receiving the funds in order to circumvent the repayment procedure.

Ms Wilcox said that a key change later this year means people would be paying back double the full amount. Regarding advance cancellation, she explained: “If you know your personal income is going to be over the threshold of £35,000 then opt out of it for the next year and then you don’t have to worry about the next payment.

“The reason you’ll want to opt out is because the payments are going to double just for one year.”

This is because the taxman is in debt, he’s in arrears, because he’s paid out all this money and it wants to claw this money back.

For one year it is going to charge everybody double on their repayments so it can get back into the normal process of taking the money from you and then returning it. It wants to have its money so for one year it is going to charge you, say you were doing, for example we were talking about, of £17 per month tax deductions, it’s going to charge you double, £34 per month for that one year and then it will go back to £17.

“So that’s why you might want to opt out if you know you’re going to be earning £35,000 and above. If your income then drops just be aware you will have to opt back in to receive the Winter Fuel Payment.”

Figures released by the DWP revealed that the total number of Winter Fuel Payment recipients during winter 2025 to 2026 stood at 10.9 million, representing a rise of 9.6 million compared to winter 2024 to 2025, when payments were restricted to eligible pensioners claiming certain means-tested benefits, and 290,000 more than in 2023 to 2024, when the scheme was universal and the vast majority of pensioners were entitled to receive a WFP.

Of all WFP recipients, 37% received £100, 9% received £150, 38% received £200 and 17% received £300. It added: “WFP were introduced in 1997 to help pension aged people pay their heating bills.

It is an annual tax-free payment, to those eligible, to help meet the costs of heating their home in the winter. For winter 2025 to 2026 this payment was between £100 and £300.

WFP amounts depending on age of recipient and age of the person they live with if they are not in receipt of benefits.

Scenario // Amount if of State Pension age but under 80 // Amount if 80 or over.

You qualify and live alone (or none of the people you live with qualify) // £200 // £300.

You qualify and live with someone under 80 who also qualified // £100 // £200.

You qualify and live with someone 80 or over who also qualifies // £100 // £150.

You qualify, live in a care home and do not get certain benefits // £100 // £150.

You can opt out of the Winter Fuel Payment using the Manage your State Pension service or by completing the online opt-out form before 11:59pm on 20 September 2026.