The Department for Work and Pensions has reminded state pensioners born on or before 22 September 1960 that they may need to opt out of Winter Fuel Payments to avoid an unexpected tax bill. Anyone earning more than £35,000 will have the payment recovered through the tax system, meaning the cash could land in their bank account only to be clawed back later by HMRC.
Opt-out deadline and process
Pensioners who do not want to receive the payment must complete the official online opt-out form by 11.59pm on September 20, 2026. Those who choose to opt out will automatically remain opted out in future years unless they contact the Winter Fuel Payment Centre to opt back in. To receive the payment again for the 2026-27 winter, pensioners must notify the DWP by March 31, 2027.
Government policy and campaigner concerns
The Labour government last year announced that Winter Fuel Payments would once again be made to all pensioners above State Pension age in England and Wales, without the need to claim a qualifying benefit. However, the reinstated scheme includes a new condition: pensioners with annual incomes above £35,000 will still receive the payment initially, but HMRC will later recover the full amount through the tax system. Campaigners have argued that this arrangement risks confusing many older people, who may not realize the payment could later increase their tax bill.
DWP advice and contact information
With the September deadlines approaching, the DWP is urging anyone who believes they may be affected to check their position now rather than face an unwelcome surprise later in the year. Pensioners who need further information can contact the Winter Fuel Payment Centre on 0800 731 0160 between 8am and 6pm, Monday to Friday, use the Relay UK service, or write to the Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR. The DWP also warns pensioners to report any change in their circumstances as soon as possible.
