Winter Fuel - Means Test

MoJo

Hi
Can anyone explain how the winter fuel payment will be means tested?
Will it be based on income for 2024/25 or expected income for 2025/26 - or will it be income over another period?
Thanks

QrizB

MoJo said:

Can anyone explain how the winter fuel payment will be means tested?
Will it be based on income for 2024/25 or expected income for 2025/26 - or will it be income over another period?

All the official information so far is saying it will be implemented through the tax system. Which means any reclaimation of the WFP for winter 25/26 will be based on your income for the 25/26 tax year, as calculated after the end of the tax year in April 2026.

MSE_James

We have an explainer here: https://www.moneysavingexpert.com/news/2025/06/winter-fuel-payment-criteria-confirmed/

MWT

Does anyone know how 'household' is determined?

Is it for example based on electoral roll or the address that HMRC have for an individual?

MoJo

QrizB said:

MoJo said:

Can anyone explain how the winter fuel payment will be means tested?
Will it be based on income for 2024/25 or expected income for 2025/26 - or will it be income over another period?

All the official information so far is saying it will be implemented through the tax system. Which means any reclaimation of the WFP for winter 25/26 will be based on your income for the 25/26 tax year, as calculated after the end of the tax year in April 2026.

So, they pay out to all state pensioners depending on their age and then claw back if your 25/26 income exceeds 35k? (Sorry if I'm being dim)

MoJo

MSE_James said:

We have an explainer here: https://www.moneysavingexpert.com/news/2025/06/winter-fuel-payment-criteria-confirmed/

Thanks - I've read that but couldn't see how they did the means test. @QrizB has clarified it.

QrizB

MoJo said:

QrizB said:

MoJo said:

Can anyone explain how the winter fuel payment will be means tested?
Will it be based on income for 2024/25 or expected income for 2025/26 - or will it be income over another period?

All the official information so far is saying it will be implemented through the tax system. Which means any reclaimation of the WFP for winter 25/26 will be based on your income for the 25/26 tax year, as calculated after the end of the tax year in April 2026.

So, they pay out to all state pensioners depending on their age and then claw back if your 25/26 income exceeds 35k? (Sorry if I'm being dim)

That seems to be the intention, yes, although you'll be able to "opt out" if you don't want to receive the WFP in the first place (and then won't have it taken back by HMRC).

It's smilar to Child Benefit and HICBC.

Scot_39

MWT said:

Does anyone know how 'household' is determined?

Is it for example based on electoral roll or the address that HMRC have for an individual?

Why would they be different ?

Both can and should be updated every move.  Via HMRC website or personal tax account login - and gov uk websites respectively - or post etc

My guess - and only my guess would be tax address - if you have had dealings with HMRC - and updated it and maybe electoral if not.  

And any mismatch more likely to impact amount paid - than how taxman will recover via as they have reportedly stated via personal tax codes for straightforward cases - or via annaul simple assesments / Self assessment in more complex tax situations.

For electoral role councils also send update requests to occupiers annually - its a legal requirement for those update requests - for all eligible adults - or soon to be adults iirc - to be registered at their normal resident address - certainly in England.

But yet millions reportedly are not.

I don't deal with the DWP for myself by post - I check their NI and state forecast via my personal tax account login - so not sure what address they hold - I assume HMRCs - as not a state pensioner or on benefits - as a govt dept - do they use HMRC address records too.

After all - how did they contact you to send the "do you want to claim state pension" letter.

Scot_39

QrizB said:

MoJo said:

QrizB said:

MoJo said:

Can anyone explain how the winter fuel payment will be means tested?
Will it be based on income for 2024/25 or expected income for 2025/26 - or will it be income over another period?

All the official information so far is saying it will be implemented through the tax system. Which means any reclaimation of the WFP for winter 25/26 will be based on your income for the 25/26 tax year, as calculated after the end of the tax year in April 2026.

So, they pay out to all state pensioners depending on their age and then claw back if your 25/26 income exceeds 35k? (Sorry if I'm being dim)

That seems to be the intention, yes, although you'll be able to "opt out" if you don't want to receive the WFP in the first place (and then won't have it taken back by HMRC).

It's smilar to Child Benefit and HICBC.

The chances are it will all be automatic - and handled via tax codes - the current tax years tax codes I believe in many cases - being updated and sent to say private/employer pensions - based on predicted year end income / recent reported actual taxable income.

See MSE link for what is and what isnt taxable income - or gov uk for a more complete list of taxable (inc state pension) and tax free benefits - like PIP, Attendance allowance, War widows pensions etc

Scot_39

QrizB said:

That seems to be the intention, yes, although you'll be able to "opt out" if you don't want to receive the WFP in the first place (and then won't have it taken back by HMRC).

It's smilar to Child Benefit and HICBC.

Without the now £20k taper though.

debitcardmayhem

It’s based on the Pension payments (DWP) and tied to HMRC nothing to do with the electoral register.