Opt Out of Winter Fuel Payments or Face a Tax Clawback Headache

John Havard, consultant, warned:

There is an easy way to opt out of the tax headache caused by the WFP on the gov.uk website, but it must be done before 15th September 2025.

The Default Position and Why It’s a Problem

By default, anyone of qualifying age will automatically receive the WFP. The default is that any age qualified individual will receive the WFP. But a ‘wealthier’ individual with an income over £35,000 will be subject to a tax ‘claw back’, where the WFP they receive is required to be returned to the Government. Given this will be a complex process, and just £1 of income above the £35,000 limit is enough to trigger a clawback, those in favour of a simple life will need to opt out of WFP before the deadline.

This means even a small increase in income – such as a pension payment, savings interest, or part-time earnings could tip someone over the limit and cause them to fall into the clawback process.

How to Opt Out

You can formally opt out of receiving WFP on the Opt out of Winter Fuel Payment page on the gov.uk website. But you must live in England, Wales or Northern Ireland to do so. The only information you need to have to hand is your National Insurance Number, name, date of birth and address.

Offline Options Still Available

John added:

According to the Winter Fuel help page, you can also contact the Winter Fuel Payment Centre via the telephone or post to opt out. Hopefully the Government is providing information on these avenues of contact via offline sources such as television, radio and leaflets, as those opting out in these ways are likely doing so because they are not online.

Key Takeaway for Higher-Income Pensioners

If your income is even slightly above £35,000 and you are age-qualified for the Winter Fuel Payment, it is worth acting now to avoid an unnecessary and potentially complex tax clawback process. Opting out before 15 September 2025 could save you time, hassle, and administrative headaches later.

Would you like to know more?

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or use the form below.