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Legislative update and urgent opt-out reminder
Legislative update
The Social Fund Winter Fuel Payment Regulations 2025 were laid before Parliament on 22 August 2025 – and will come into force on 15 September 2025, the first day of the Winter Fuel Payment qualifying week. They can be found here: The Social Fund Winter Fuel Payment Regulations 2025.
The Regulations revoke the Social Fund Winter Fuel Payment Regulations 2024 – and restore Winter Fuel Payments to all pensioner households in England and Wales from winter 2025/26.
Payments made to pensioners who are not in receipt of Pension Credit or another relevant means-tested benefit, and who have an annual income over £35,000, will then be recovered by HMRC via the tax system. The provisions to achieve this are separate – and will form part of the Finance Bill to be introduced following the Autumn Budget.
Together, the Regulations and forthcoming provisions in the Finance Bill form the legislative basis for the global policy of effectively means testing the Winter Fuel Payment such that individuals with incomes at or below £35,000 benefit from them. As a result, around 9m pensioners in England and Wales will benefit from a Winter Fuel Payment this winter.
Recovery process
For pensioners in Pay As You Earn (PAYE), HMRC will automatically collect the payment through a change to their tax code, unless they already file a Self Assessment tax return. Changing the tax code will mean their Winter Fuel Payment will be deducted from their income and paid to HMRC in monthly instalments across the 2026 to 2027 tax year, starting from April 2026.
If they file a Self Assessment tax return online each year, HMRC will automatically include the payment on their tax return as part of their income, starting from the 2025 to 2026 tax return, which is due by 31 January 2027. If they file a paper Self Assessment tax return, they’ll need to include the payment on their return. They do not need to include it on their 2024 to 2025 tax return which is due by 31 January 2026.
Winter fuel payments scam texts
DWP is aware of a Winter Fuel payment text scam. DWP will never ask people for bank details via text, e-mail or via links to click within a text or e-mail.
If you have had a message like this, it will be a scam and should be reported to Action Fraud on 0300 123 2040.
Find out more about phishing and scams
HMRC also has reporting routes for tax specific scams. HMRC will never contact you by text to claim Winter Fuel Payments or request personal information. If you’re unsure about a text claiming to be from HMRC forward it to 60599, or email [email protected].
Report a tax scam phone call on GOV.UK
Opt-out deadline and process
Pensioners who do not wish to receive a Winter Fuel Payment may opt out of receiving an automatic payment. By opting out, pensioners with an annual income over £35,000 will avoid having their payment recovered in full via the tax system at a later date.
Opting out is simple and can be done by:
- Completing the online form
- Calling the Winter Fuel Payment Centre helpline: 0800 731 0160.
Those that wish to do so, must opt out before 15 September 2025, to ensure that the opt-out can be processed in time before payments are made.
People who do not opt out before 15 September will automatically receive the payment.
People who have opted out may choose to opt back in, via the helpline. For the 2025/26 winter period, the final date for opting back in is 31 March 2026.
Scotland and Northern Ireland
The Scottish government will legislate separately for their Pension Age Winter Heating Payments for 2025; read the draft legislation.