Winter fuel allowance
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Winter Fuel Payments and Tax: What’s Changing for 2025/26?

The UK Government has confirmed that Winter Fuel Payments will continue for the 2025/26 tax year, offering support to millions of pensioners across England and Wales to help cover winter heating costs.

However, a key change this year is that some recipients may now be taxed on the payment, depending on their income level.

Here’s what you need to know.

❄️ Who Is Eligible for the Winter Fuel Payment?

For 2025/26, you’ll typically be eligible if:

  • You were born on or before 22 September 1959.

  • You are living in the UK during the qualifying week (typically mid-September 2025).

  • You’re receiving the State Pension or certain benefits, such as:

    • Pension Credit

    • Income Support

    • Income-based Jobseeker’s Allowance (JSA)

    • Income-related Employment and Support Allowance (ESA)

➡️ Northern Ireland residents can apply separately through NI Direct.

💷 How Much Will You Receive?

The standard Winter Fuel Payments for England and Wales in 2025/26 are:

Household type Amount
Someone under 80 in a household £200
Someone aged 80 or over in a household £300
Care home residents (age-based) £100–£150

The payment will usually be shared between partners if both are eligible and live at the same address.

🧾 Taxation Update: Payments May Now Be Taxable

This is where the 2025/26 rules introduce something new:

From this year, HMRC will automatically recover the tax on Winter Fuel Payments if your total income exceeds £35,000.

This can happen via:

  1. PAYE – if you’re employed or receive a pension through a PAYE scheme.

  2. Self-Assessment – if you file a tax return.

  3. Paper tax return – you must now manually include the payment in your income.

Important:

  • The tax will be based on your individual income, not household income.

  • Tax will be recovered from your taxable income, not from the payment itself before you receive it.

📅 Important Deadlines

If you’re in Northern Ireland, you must apply by 15 September 2025.

If you’re in England or Wales and already receiving a qualifying benefit or State Pension, you should be automatically paid.

🧠 Merranti’s Advice

  • If your total income is over £35,000, make sure you or your accountant include the Winter Fuel Payment in your tax return or PAYE code to avoid issues later.

  • If you are unsure whether you qualify or need to register for the payment, don’t delay — especially in Northern Ireland.

  • If you’re helping an elderly relative with their finances, make sure they understand the tax impact of this year’s payment.

📨 Still have questions?

At Merranti Accounting, we’re here to help pensioners and families navigate this new tax treatment and ensure nothing is missed in returns or HMRC records.

👉 Find more from Merranti’s newsletter here for regular updates on pensions, tax, and benefits.

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