Last chance to opt out of Winter Fuel Payment to avoid government clawback
Are you eligible for the Winter Fuel Payment? If you’re not sure, you might be among the millions of pensioners who will receive the payment over November and December but end up paying it back to the government through tax. Although the allowance will provide financial relief for many suffering from the cost-of-living crisis, it will inevitably cause frustration for those who are ineligible.
If you don’t meet the criteria for the payment, the government will simply take the money back through the tax system unless you opt out by the deadline of Monday 15 September. This could cause issues when budgeting down the line, especially for those unaware of their ineligibility, who will receive unexpected higher-than-usual tax bills.
Here’s everything you need to know about whether or not you’re eligible, and how to opt out.
10th September 2025
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Amy Dedman See profile
It’s crucial to check your eligibility before opting out so you don’t unnecessarily miss out on the payment. All pensioners will receive between £100 and £300, but in order to keep the money for yourself, you must meet all of the following criteria:
- Your annual income is less than £35,000 for the financial year ending April 2026
- You live in England or Wales
- You were born before 22 September 1959
Those eligible will not be subject to the government clawback via the tax system. For more information on eligibility, visit the UK Government website.
The simplest way to avoid the frustrating government clawback is to opt out of the payment entirely. Now is your last chance to do this, as you only have until the deadline of Monday 15 September to do so. To opt out of the payment, simply fill out the government’s online form on or before the deadline date, or call the helpline on 0800 731 0160 before 6pm.
It’s most likely that the payment will be reclaimed through your PAYE Coding Notice over the 2026-2027 financial year, or through a Self-Assessment tax return if you complete one, although this is yet to be confirmed.
We know how hard it can be to predict how much money you’ll have in over half a year’s time.
At Old Mill, we can help you project your income levels to see if you’re eligible for the payment. If you’re not eligible, we can opt you out ourselves, saving you precious time and stopping you from being hit by the government clawback – get in touch.
