Overview
- Payments of £200 or £300 will be sent automatically in 2025/26 to people born on or before 21 September 1959, with the higher rate applying where someone aged 80 or over lives in the household.
- Pensioners with taxable income above £35,000 who did not opt out by 15 September will have the payment reclaimed through their 2026/27 tax code or added to their 2025/26 Self Assessment bill.
- DWP household rules can result in two eligible non‑couple occupants each receiving a payment, meaning a shared home could receive up to £600 in total.
- Couples on a joint Pension Credit claim receive a single household payment, so even where one partner is over 80 the total is £300 rather than two separate payments.
- Most recipients are expected to be paid in November or December 2025, and experts note that only salary sacrifice arrangements reliably reduce taxable income below the £35,000 threshold for avoiding clawback.