Around nine million pensioners are set to receive an extra £200 or £300 to help with heating costs this year as the Department for Work and Pensions’ (DWP) winter fuel payment scheme continues with new criteria.
The government severely restricted the cold weather scheme for the winter of 2024 to only the lowest-income pensioners, before a U-turn last year to once again expand the provision.
This still limited the original scope of the payment, however, which is now no longer given to all pensioners regardless of income.
Instead, it is guaranteed only for those on incomes of under £35,000 – representing around 60 per cent of all UK pensioners. These will begin to be paid in November and December 2026.
But there are also five groups of older people who the DWP states are ineligible for the payment.
These are pensioners who:
- live outside England and Wales
- were in hospital getting free treatment for the whole of the week of 21 to 27 September 2026 and the year before that
- need permission to enter the UK and their granted leave says that they cannot claim public funds
- were in prison for the whole of the week of 21 to 27 September 2026
Those who live in a care home are still eligible for the winter fuel payment, with one crucial exception. If the individual universal credit, pension credit or ESA, and lived in a care home full-time from 29 June or earlier, then they are not eligible.
Pensioners who have incomes of over £35,000 now pay back the payment through the tax system. In most cases, the payment is worth £200 for someone aged under 80, or £300 for those at this age or over.
HM Revenue and Customs has begun reaching out to more than one million pensioners in the category regarding changes to their 2026/27 tax code that will reclaim the winter fuel payment.
The adjustment will see the repayment spread across the entire tax year through the PAYE system. For those under 80, this will mean a deduction of around £17 a month. For those aged 80 or over, it’ll be £25.
For those who complete a self-assessment tax return, the payment is now required to be included on forms. Those who file online are likely to see this added automatically.
It is now too late for pensioners who are over the £35,000 threshold to opt out, and they have until September this year to opt out for the 2027 scheme.
