Winter Fuel Payment if one member opts out.

Silvertabby

jem16 said:

Silvertabby said:

Dazed_and_C0nfused said:

Silvertabby said:

Knew this was going to happen.  Mr S is on the cusp of £35K this tax year, definitely over once next April's cost of living increases are applied.  Unless I've missed something, not clear if the £35K limit is based on current income or the next financial year (when WFA for those who were not eligible, but who didn't opt out, will be recovered via a reduced tax code). 

We had a chew on about which method DWP/HMRC would be least likely to screw up, and came up with 50:50.  So, he didn't opt out and I will be keeping a very close eye on his taxes (as always) next year.

I've got a couple or so years to go before I reach the frame, but understood that I would get £100 until then.  If I do get £200, then what was the point of all this faff?  Whatever, it will still go to our local foodbank.

The £35k limit to determine if the Winter Fuel Payment needs to be paid back is based on the income in the tax year the Winter Fuel Payment was for, not the tax year it will be collected back in.

Thanks.  It literally depends on the exact method they use to calculate his State pension - he is that close! 

The exact method should be 1 week of old rate plus 51 weeks of new rate and that’s what is used against the tax code. However with Self Assessment they always pre-populate with 52 weeks of new rate and I always correct it. 

Thanks.  We've never had to do self-assessment.

1 week of old plus 51 weeks of new = under £35K

52 weeks of new = over £35K.

He can't be the only one this close....

pinnks

The £35k limit is based on your taxable income before allowances (personal and personal savings etc).  So, if you have £34,001 of taxable earnings and pensions plus £1,000 of taxable savings income you are above the limit by £1 and your WFP will be clawed back by whatever mechanism is legislated in the forthcoming Finance Bill...   

jem16

pinnks said:

So are you saying that where a person asks DWP to not make an automatic payment in accordance with Reg 5(1), that Reg 4(5) & (6) come into play to disapply Reg 2, meaning that said person has no entitlement, which in turn means the other partner gets the full £200?

That certainly looks to be one reading of the Regs but it would drive a coach and horses through the policy intention. 

The Scottish Government is handling it differently. They’re saying that an opt out would be a zero rated award of entitlement as opposed to it cancelling entitlement. It will be interesting to see what my letter says when it arrives as I’ve opted out.

https://www.gov.scot/publications/policy-note-winter-heating-assistance-pension-age-scotland-amendment-regulations-2025/

pinnks

Looking at The Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024 The Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024 (as amened by the 2025 regulations) they appear to have done it properly.  They define "opting out" and "opting back in" and set a payment amount for an opted out person at £0, rather than getting anywhere near the question of "entitlement".