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Winter Fuel Payments Restored for 9 Million Pensioners as £35,000 Clawback Rule Applies

Higher earners will see payments reclaimed through the tax system, with an opt-out window closing in mid-September.

Overview

  • People in England and Wales born before 22 September 1959 will be paid automatically in November or December, with letters due in October or November confirming amounts.
  • Households will typically receive £200 if someone is of State Pension age or £300 if someone is aged 80 or over, with the exact sum based on circumstances during 15–21 September 2025.
  • Those with taxable income of £35,000 or less keep the payment, while recipients above the threshold will have the full amount recovered via PAYE code changes in 2026/27 or through their 2025/26 Self Assessment.
  • Pensioners above the threshold can opt out to avoid receiving the payment, though outlets report differing deadlines (12, 14 or 15 September), so the government’s GOV.UK guidance should be checked for the correct cut-off.
  • Eligibility exclusions include living outside England and Wales, being in hospital or prison for the entire qualifying week, immigration conditions barring public funds, and some long-term care home residents; DWP also reports Pension Credit claims rose 44% year on year to July 2025.