With energy debts rising and letters due in November, many older readers now face tricky rules reshaping winter budgets.
The Department for Work and Pensions has set out who will and won’t receive the Winter Fuel Payment for 2025–26. Chancellor Rachel Reeves has reinstated the scheme for nine million pensioners in England and Wales, paying between £200 and £300. Yet five groups will get nothing, even if they meet the age rule and have kept an eye on their heating costs.
Five groups who will miss out this winter
- People living outside England and Wales
- Those in hospital for the entire qualifying week and the same week last year
- People whose immigration status bars access to public funds
- Anyone in prison for the entire qualifying week
- Long-stay care home residents on income-related benefits since 23 June 2025 or earlier
To be eligible this winter, you must be born before 22 September 1959 and have taxable income of £35,000 or less.
Letters will land in October and November telling eligible households how much they’ll receive. The payment supports older people with heating costs at the coldest point in the year. But the rules are precise, and the DWP has confirmed the following exclusions.
Living outside England and Wales
If you normally live outside England and Wales, you will not qualify under the reinstated scheme. Scotland and Northern Ireland run separate arrangements, so moving across a border can change your eligibility. Check where you are officially resident during the assessment period.
In hospital during the qualifying week and the year before
People who were in hospital receiving free treatment for the entire qualifying week of 15–21 September 2025, and for the same week in the previous year, are excluded. The rule targets people with prolonged stays who aren’t facing typical household heating bills at home during those periods.
If you were discharged during the week, or admitted after, you may still meet the criteria. Keep discharge paperwork to hand if you need to challenge a decision.
Immigration status restricting public funds
If you require permission to enter or remain in the UK and your grant of leave states you cannot claim public funds, you will not receive the Winter Fuel Payment. This “no recourse to public funds” condition covers a range of benefits and includes the winter payment.
People whose status changes before the qualifying week can become eligible. Seek specialist advice if your conditions have been updated.
In prison during the qualifying week
Anyone in prison for the entirety of 15–21 September 2025 will not receive a payment. The qualifying week acts as a snapshot for entitlement, so short stays outside that window won’t affect eligibility.
Long-stay care home residents on income-related benefits
Care home residents face a tighter rule. If you have lived in a care home continuously since 23 June 2025 or earlier and receive one of the following income-related benefits, you won’t get a payment:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
Where these benefits don’t apply, some residents may still have different entitlements depending on their arrangements. Check your care home status as recorded by the DWP.
What eligible households will get
Most people who qualify will receive between £200 and £300, based on personal circumstances. Amounts differ within households, and people in the same home can receive different payments.
Letters in October or November will confirm your entitlement and the amount due for winter 2025–26.
Earning over £35,000: what happens to your winter payment
The reinstated scheme includes a taxable income threshold. If your taxable income exceeds £35,000, HMRC will recover your Winter Fuel Payment.
| Income position | How HMRC recovers it | When it’s collected | Example |
|---|---|---|---|
| Over £35,000 and paid via PAYE | Adjusts your tax code | During the 2026–27 tax year | £250 payment recovered over 12 months, about £20.80 per month |
| Over £35,000 and in Self Assessment | Adds the amount to your 2025–26 return | When you settle your 2025–26 bill | £250 added to the amount you owe by 31 January 2027 |
This is not a partial tax charge. HMRC recovers the full payment. If your income sits near the line, check your taxable income rather than your gross. Pension withdrawals and savings interest can push you above £35,000.
Payment range: £200–£300. Threshold: £35,000 taxable income. Qualifying week: 15–21 September 2025.
Rising bills tighten the squeeze
Household energy debt has climbed to an eight-year high, with families starting winter owing £780 million to suppliers. Around 3.5 million households are in arrears, up 46 percent year on year. The average debt stands at £223, up from £173.
Energy account credit has thinned. Typical balances have slipped from £128 to £98, dropping below £100 for the first time since the energy crisis began. More than two million low-income households, and an estimated ten million homes overall, now have no credit at all to cushion winter bills.
Ofgem’s price cap rose by two percent on 1 October, lifting a typical annual bill to £1,755 for direct debit customers in England, Scotland and Wales. Many households say they will cut thermostat settings and add extra layers to keep costs in check. One in ten indebted households say they cannot afford to clear what they owe. A further nine percent plan to move to prepayment meters to manage debt.
Households are entering winter with £780m of energy debt as the price cap rises to £1,755 a year.
What to do now
- Check the dates: if you were at home during 15–21 September 2025, and born before 22 September 1959, you are within the basic age and residence scope.
- Review your income: if taxable income may exceed £35,000, set aside the value of the payment to avoid a surprise when HMRC recovers it.
- Keep documents: discharge summaries, immigration paperwork and care home agreements can help resolve disputes quickly.
- Speak to your supplier: ask about repayment plans, support funds, and whether you qualify for a Priority Services Register.
- Check parallel help: some households may qualify for schemes such as the Warm Home Discount, or for targeted local council support.
Examples to sense‑check your position
Example 1: You earn £34,200 from a work pension and part‑time job, and you were at home during the qualifying week. You meet the age rule and remain under £35,000, so you keep the payment you receive.
Example 2: You earn £36,400 taxable income and receive £250 as your winter payment. HMRC adds £250 to your Self Assessment bill for 2025–26. If you pay through PAYE only, your tax code changes in 2026–27 to recover the same £250 across the year.
Example 3: You live in a care home and have received Pension Credit since June. You will not receive the winter payment this year.
Key dates and what to expect
- 23 June 2025: long-stay care home cut‑off date for residents on specified income‑related benefits.
- 15–21 September 2025: qualifying week for residence, hospital and prison rules.
- October–November 2025: letters confirming eligibility and amounts.
- 2026–27 tax year: HMRC code changes for people over the £35,000 threshold who are not in Self Assessment.
If you live in Scotland or Northern Ireland, check your nation’s guidance, as rules and payment routes can differ. Moving house or changing household composition can also affect entitlement, so keep your details updated with the DWP.
People who are uncertain about their taxable income can draft a quick calculation: add pensions, employment income, taxable state benefits and savings interest, and subtract personal allowance adjustments. If the total lands near £35,000, assume a recovery risk and plan your winter budget with that in mind.
Can someone clarifiy the residency bit? I’m officially resident in Wales but stayed with my daughter in Belfast during 15–21 Sept 2025. Does that jeopardise eligibility, or is it about where you’re normally resisdent rather than where you slept that week?
The £35,000 threshhold with full clawback feels punitive. Why not taper it? Recovering 100% for earning £35,001 is bonkers and will definately catch people with a small savings interest spike.