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winter fuel payment - anyone planning around it?
not sure about this one. Currently winter fuel payment is universal, but for this year onwards it is being capped at 35k income. I think its per person so not measured per household. If you earn more than 35k it’ll be clawed back via tax code (fun, they’re enough of a PITA already thanks)
I think even without change we’ll be below that by some margin - I think sub 30k from me and my wife will be SP only. So we get £200 each per year? I mean if its free why not and its more valuable than the £2880 thing that people put time and effort into claiming (around £180 a year per person).
I’m not sure I’d specifically adjust plans to work around it but perhaps if you have a very disproportionate portfolio balance between a couple such that one of you tips over the threshold - I’d almost be tempted to adjust just to avoid tax code faff.
Comments
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It changed last year, it's not new this tax year.
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A household with two eligible recipients, gets £200 - so £100 each. If you are over 66 but below 80.
You get it automatically, unless you opt out.
Last year I was too late to opt out so tried to keep my taxable income below £35K , to avoid any tax code complications. Unfortunately I forgot about £1500 of savings interest…………
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Can someone remind me if we are having to pay double next year if we don't opt out? I'm sure I read it was £17 this year and £34 next. I have opted out as it seems likely I will still be doing my two days at work next year, so before tax is taken I just stray over to the above £35000. Enough below after tax, so when I do stop work I will also be easily under.
Paddle No 21 :wave:0 -
No comparison between funding annual £2880 into sipp ( for £720 tax relief ) and WFA.
I am into my 11th year of annual £2880 contribution. Racked up a gross contribution of £36k over those years including the £7,200 relief. On top of that also reducing my annual self assessment tax bill by another £720 ( 40% tax payer). Well worth the so called 'faff' of SIPP funding.
As for WFA, permanently opted out of receiving it back in February ( far more trouble than its worth).
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Not sure where those figures come from.
If you get say £100 WFA , but then earn over £35K, then the following tax year, your tax code is adjusted so you effectively pay the £100 back again.
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If you’re working sure. but assuming you’re in drawdown like most retirees(?) then the net benefit is more like £180 a year isn’t it? if you’re using income from drawdown to then put back in at least.
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You won't be eligible for the winter 2026 payment if you are in prison for the whole of the week of 21 to 27 September 2026. So if you're planning on going to prison, try to avoid that week.
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The figures come from here. 2027/28 is going to be a double payment so that it changes from in arrears to in advance collection.
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Yes 2027/28 will be a double tax amount.0 -
OK thanks, I was not aware of that. To be accurate the £17 and £34 pound figures are for anybody receiving £200 per year WFA. Many will only get £100 ( if they are a pensioner couple below 80) so the tax figures would be half.
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