Pensioners in England and Wales have until 15 September to opt out of receiving the winter fuel payment, as advised by the Institute of Chartered Accountants in England and Wales (ICAEW).  

The government has updated guidance on recovering the payment through the tax system for those with incomes exceeding £35,000.  

Announced in June 2025, all pensioners in England and Wales will be eligible for the winter fuel payment from this winter onwards.  

Pensioners in Northern Ireland may receive the payment from the Northern Ireland Executive, while those in Scotland may qualify for the pension age winter heating payment. 

The payment will be recovered through the tax system if the pensioner’s income exceeds £35,000, unless they choose to opt out.  

ICAEW technical manager of tax Katherine Ford said: “Pensioners have until Monday 15 September 2025 to contact HMRC to opt out of the winter fuel payments if their total income for tax purposes is more than £35,000. HMRC have a useful online tool to check if income is over this amount. 

“If a person with income over £35,000 receives the payment, it will be recovered automatically through their pay as you earn tax code for 2026/2027, unless they are in self-assessment, in which case it will be added by HMRC to their tax return for 2025/2026. If they fill in a paper self-assessment tax return, they will need to remember to include it on the return.” 

Pensioners can opt out by completing an online form or contacting HMRC by 15 September. 

If a pensioner initially opts out but later finds their income for 2025/26 is £35,000 or less, they have until 31 March 2026 to opt back in.  

Pensioners and their financial advisors should consider setting a reminder to review income in early to mid-March 2026. 

The Scottish Government will provide details on opting out in the autumn.  

Earlier this month, the ICAEW highlighted the role of accountants in implementing changes to the UK’s Money Laundering Regulations.