Winter Fuel Payment

The Government announced in June 2025 that the Winter Fuel Payment will be made universal in England and Wales from winter 2025. Subsequently, the Scottish Government and Northern Ireland Executive have confirmed that they will mirror the approach for England and Wales.

Individuals who are of State Pension age and have total income over £35,000 will have their Winter Fuel Payment recovered through the tax system. The amount recovered will be equal to the full value of the Winter Fuel Payment.

If a pensioner’s total income is above the income threshold, the tax will be automatically recovered through PAYE, or through their Self-Assessment return if they pay tax that way.

For the majority of individuals, tax recovery will be made through PAYE automatically, meaning pensioners will not need to take any further action. For those in Self Assessment, HMRC will pre-populate their tax return with the amount of the payment, using data provided by Department for Work and Pensions, or Social Security Scotland for payments made in Scotland. Pensioners do not need to register for Self-Assessment just to declare their Winter Fuel Payment.

The Government will publish further details of the operational impacts, including staffing and IT delivery costs of HM Revenue and Customs making these changes in a Tax Information and Impact Note at Budget 2025, alongside draft Finance Bill legislation on the tax recovery of the Winter Fuel Payment.