State pensioners are being reminded by the Department for Work and Pensions (DWP) to opt out of the Winter Fuel Payment if their income exceeds £35,000 per year, to avoid automatic deductions by HM Revenue and Customs (HMRC).
The Winter Fuel Payment will be reinstated for all pensioners across the UK this winter. However, starting in January 2027, those with annual incomes over £35,000 through PAYE will see this payment clawed back automatically by HMRC. Pensioners can prevent this by opting out of receiving the payment.
Those who do not choose to opt out but earn over the threshold will receive the Winter Fuel Payment initially, but HMRC will recover the amount later via tax deductions. It is not possible to return the payment voluntarily.
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To opt out, pensioners have several options:
- Use the Manage your State Pension online service before 11:59pm on Friday, 20 September 2026. A National Insurance number is required to access this service, and new users can create sign-in details.
- Complete the opt-out form before 11:59pm on the same date.
- Call the Winter Fuel Payment helpline at 0800 731 0160 before 6pm on Wednesday, 18 September 2026.
Money Saving Expert, founded by Martin Lewis, emphasised the importance of opting out for those above the income threshold: “If you know your income will be above the £35,000 a year threshold, you can opt out of getting the payment to avoid having it clawed back later. Once you have opted out, you won’t receive any future Winter Fuel Payments unless you opt back in.”
Pensioners are encouraged to act promptly to ensure they avoid complications related to the payment and subsequent tax deductions.