State pensioners can opt out of the Winter Fuel Payment with a phone call by 6pm on September 18 (Image: Getty)
State pensioners in England, Wales and Northern Ireland are urged to make one phone call before Friday, September 18, or risk facing extra tax charges from HM Revenue and Customs (HMRC).
The phone call is to opt out of receiving this year’s Winter Fuel Payment, which is worth up to £300, and will be paid to people of State Pension age from November. You’ll get a Winter Fuel Payment if you were born on or before June 27, 1960, but not everyone will be eligible to keep the payment. The Department for Work and Pensions (DWP) has confirmed that pensioners with a total individual annual income over £35,000 will have their Winter Fuel Payment taken back by HMRC.
To do this, HMRC will change your tax code which means the tax deducted from your wages, salary or pension will increase.
HMRC will make this change automatically from the start of the new tax year in April 2027 and will charge pensioners extra tax every month until the payment has been fully recovered.
This process is already underway for high income pensioners who received a Winter Fuel Payment in 2025. According to HMRC, for a typical Winter Fuel Payment of £200, approximately £17 extra tax will be deducted per month.
If HMRC needs to collect two payments, pensioners will pay even more tax each month, which for a £200 payment, works out at around £33 per month.
Explaining the process, the DWP said: “HMRC will collect 2 payments through your tax code at the same time. This means you will pay more tax each month.
“For example, if HMRC is already collecting your 2025 payment, your tax code will change in January 2027 to start collecting your 2026 payment. You will pay approximately £30 to £33 more tax each month if your Winter Fuel Payment is £200 in both years.
“If you do not opt out of receiving Winter Fuel Payment, HMRC will change your tax code again in April 2027 to continue collecting your 2026 payment and start collecting your 2027 payment in advance.”
It’s possible for state pensioners to avoid these extra tax charges by opting out of receiving a Winter Fuel Payment altogether, but the deadline to do this is fast approaching.
The DWP has set two separate deadlines to do this, both of which fall this month. The earliest deadline to opt out is Friday, September 18, 2026, if you opt out via a phone call. To do this, you must call the Winter Fuel Payment Centre helpline on 0800 731 0160 by 6pm on this date.
There is a slightly longer deadline if you choose to opt out online instead. You can do this via the Manage your State Pension service or by completing the opt out form before 11:59pm on Sunday, September 20, 2026.
Confirming the deadline, the DWP said: “You can choose to opt out of receiving the Winter Fuel Payment. If you do not opt out and your total income is over £35,000, you will receive the Winter Fuel Payment but HMRC will take it back. You cannot return it yourself. You can check how HMRC will take it back.
“To opt out of getting the Winter Fuel Payment you can either:
complete the opt out form before 11:59pm on 20 September 2026
call the helpline before 6pm on 18 September 2026
“You’ll need to provide your National Insurance number when you use the online form or call the helpline.
“You’ll need to sign in to use the Manage your State Pension service. If you do not already have sign in details, you’ll be able to create them.”
Opting out of the Winter Fuel Payment won’t affect your State Pension and you don’t need to opt out every year, as you won’t receive a payment in future unless you choose to opt back in.
If you do decide to opt back in, you can do so by contacting the Winter Fuel Payment Centre. To get a payment for winter 2026 to 2027, you will need to contact the service before March 31, 2027.
