Winter Fuel Payment Clawback: What You Need to Know

If you were born before 22 September 1959 and live in England, Wales or Northern Ireland, you’re likely to receive a Winter Fuel Payment (WFP) this coming winter (2025–26). The payment – worth between £100 and £300 – is designed to help with heating costs, and will be made automatically in November or December 2025.

However, HMRC has confirmed that the WFP will now be clawed back if your income for the 2025–26 tax year exceeds £35,000. Here’s what that means and how it could affect you.

How the clawback will work

If your income for the year to 5 April 2026 is above £35,000, HMRC will recover the value of your Winter Fuel Payment the following year.

• If you’re taxed through PAYE: HMRC will adjust your 2026–27 tax code to collect the amount gradually. For example, a typical £200 payment will be recovered at around £17 per month from April 2026 to March 2027.

• If you complete a Self Assessment tax return: HMRC will automatically include your 2025–26 WFP in your return, and the amount will be added to your balancing payment due by 31 January 2027.

  
  

Checking or managing your payment

HMRC will provide an online tool where you can check whether and how your WFP will be recovered.

If you expect to exceed the income threshold and would rather avoid the clawback process, you can opt out of receiving the WFP altogether. To do so, you’ll need to notify HMRC by 15 September 2025.

You can find full details, including how to opt out, at gov.uk/winter-fuel-payment.

How SJC, Chartered Accountants can help

If you’re unsure how this change might affect your tax position, or whether opting out is the right choice for you, our team can help. We can review your estimated income for 2025–26, advise on the impact of the WFP recovery, and ensure your Self Assessment or PAYE code is handled correctly.

Get in touch with SJC, Chartered Accountants to discuss your situation in more detail.