Winter Fuel Repayment Explained
A Winter Fuel Repayment may apply if you were born before 28 June 1960 and receive a Winter Fuel Payment to assist with paying your heating bills in the winter.
Last year’s payment was made in November or December 2025. The amount you received will be based on when you were born and your circumstances.
You may need to make a Winter Fuel Repayment if your individual taxable income is more than £35,000. The government introduced a cap on this allowance, so that individuals with total income over £35,000 in the year to 5 April 2026 must repay it to HMRC.
While many pensioners receive the payment automatically to help with heating costs, not everyone will be entitled to keep it. HMRC will recover the payment from individuals whose income exceeds the threshold.
This guide explains who needs to make a Winter Fuel Repayment, how HMRC collects it, and what you can do if you expect to be affected.
Who Needs to Make a Winter Fuel Repayment?
A Winter Fuel Repayment may be due if your individual taxable income for the tax year exceeds £35,000.
The threshold applies to each person separately. It is not based on your household income, so one person in a couple may need to repay the payment while the other does not.
Taxable income can include:
- State Pension
- Private or workplace pensions
- Employment income
- Self-employment profits
- Rental income
- Savings interest
- Dividend income
- Other taxable income
If your income exceeds the threshold, HMRC will normally recover the full amount of the Winter Fuel Payment you received. You can also check the official HMRC guidance on paying back the Winter Fuel Payment.
How Does a Winter Fuel Repayment Work?
If your income is over the threshold and you complete a Self Assessment tax return, you must tell HMRC how much Winter Fuel Payment you received. The repayment will then be included as part of your overall tax calculation.
If you use an accountant to prepare your tax return, make sure you provide details of the amount you received. This will help ensure your return is completed correctly.
If you do not complete a Self Assessment tax return, HMRC may recover the repayment by adjusting your PAYE tax code or by contacting you directly.
Should You Opt Out?
If you expect your individual taxable income to remain above £35,000 for some time, you may prefer to opt out of receiving future Winter Fuel Payments. This avoids receiving the money only to repay it later.
To opt out for winter 2026/27:
- Complete the online opt-out form by 20 September 2026.
- Call the Winter Fuel Payment Centre on 0800 731 0160 by 18 September 2026.
You can opt out online here:
Winter Fuel Payment opt out form
If your circumstances change in the future, you can choose to opt back in.
What If Your Income Is Close to £35,000?
If your income is close to the threshold, it is worth checking your position before assuming a repayment will be due.
Your taxable income may include pensions, investment income, rental income and other taxable sources. Understanding your total income can help you avoid an unexpected tax bill.
If you are unsure whether a Winter Fuel Repayment applies to you, seeking professional personal tax advice before your tax return is submitted can help avoid mistakes.
Frequently Asked Questions
What is a Winter Fuel Repayment?
A Winter Fuel Repayment is the amount recovered by HMRC when an individual with taxable income above £35,000 receives a Winter Fuel Payment.
Is the £35,000 threshold based on household income?
No. The threshold applies to each individual, not to a couple or household.
How do I repay my Winter Fuel Payment?
If you complete a Self Assessment tax return, HMRC will normally recover the payment through your tax calculation. If you do not complete a tax return, HMRC may recover it through your tax code or contact you directly.
Can I avoid making a Winter Fuel Repayment?
Yes. If you expect your income to remain above the threshold, you can opt out of receiving future Winter Fuel Payments before the deadline.
Where can I opt out?
You can opt out online by completing the government form before 20 September 2026, or by calling the Winter Fuel Payment Centre on 0800 731 0160 before 18 September 2026.
Need Advice?
The repayment rules may not be straightforward if you have income from several sources. If you are unsure whether you need to make a Winter Fuel Repayment, or you would like help completing your Self Assessment tax return, we can help you understand your obligations and ensure everything is reported correctly to HMRC.