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DWP Issues Reminder of September Opt-Outs as £35,000 Rule Triggers HMRC Reclaims

The warning matters because higher-earning pensioners will get the cash up front only to have HMRC recover it later, risking surprise tax bills.

Overview

  • The Department for Work and Pensions issued the reminder on Monday and set opt-out deadlines of 6pm on 18 September 2026 for helpline calls and 11:59pm on 20 September 2026 for the online form.
  • Pensioners must give their National Insurance number when opting out and the DWP says payments cannot be returned once paid.
  • Anyone with annual income over £35,000 will receive the Winter Fuel Payment initially but HM Revenue and Customs will automatically recover the full amount through the tax system.
  • Standard payments are £200 for a household with someone under 80 and £300 where someone is over 80, payments are halved for two pensioners living together, and the Treasury estimates about two million people may be affected by the £35,000 rule.
  • The change follows a July 2024 restriction and a June 2025 reversal that restored payments to everyone over state pension age, and charities warn the recovery system could cause confusion and unexpected bills for older people so the DWP is urging people to check eligibility and report any change of circumstances.