Millions of pensioners are being urged to check their finances now or risk an unexpected tax bill after the Government issued a fresh alert.

The DWP has reminded pensioners born on or before 22 September 1960 that anyone earning more than £35,000 will have the payment recovered through the tax system – meaning the cash could land in their bank account only to be clawed back later by HMRC. Officials say those who do not want to receive the payment at all must act before a series of September deadlines.

Anyone who wishes to opt out must either:

• Complete the official online opt-out form by 11.59pm on September 20, 2026; or
• Call the Winter Fuel Payment helpline by 6pm on September 18, 2026.

Pensioners will need their National Insurance number when making the request. The DWP has stressed that people cannot simply repay the money themselves once it has been paid. Instead, HMRC will recover it automatically through the tax system from those whose annual income exceeds £35,000.

The opt-out decision is also designed to last beyond this winter. Anyone who chooses not to receive the payment will automatically remain opted out in future years unless they contact the Winter Fuel Payment Centre to opt back in.

Those wanting to receive the payment again must notify the DWP by March 31, 2027, if they wish to be included for the 2026-27 winter payment. The department is also warning pensioners to report any change in their circumstances as soon as possible.

Moving home, entering a care home or any other change that could affect entitlement should be reported promptly. Officials warn that failing to provide accurate information could leave recipients having to repay money if they have been overpaid.

The latest reminder follows one of Labour’s most controversial policy reversals.

In July 2024, Chancellor Rachel Reeves restricted Winter Fuel Payments to pensioners receiving Pension Credit or certain other means-tested benefits, describing the move as a “tough choice” made to help repair the public finances.

The decision sparked a fierce political backlash, with charities warning millions of older people would face a choice between heating and eating during the winter. Labour MPs also voiced concern that many low-income pensioners missed out because they were eligible for Pension Credit but had never claimed it.

Amid mounting pressure, the Government reversed course in June 2025. It announced that Winter Fuel Payments would once again be made to all pensioners above State Pension age in England and Wales, without the need to claim a qualifying benefit.

However, the reinstated scheme came with a new condition. Pensioners with annual incomes above £35,000 would still receive the payment initially, but HMRC would later recover the full amount through the tax system.

Campaigners have continued to argue that the arrangement risks confusing many older people, who may not realise the payment could later increase their tax bill.

With the September deadlines now approaching, the DWP is urging anyone who believes they may be affected to check their position now rather than face an unwelcome surprise later in the year.

Pensioners who need further information can contact the Winter Fuel Payment Centre on 0800 731 0160 between 8am and 6pm, Monday to Friday, use the Relay UK service, or write to the Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.