The Winter Fuel Payment is a crucial allowance for millions of older people in the UK, helping them cope with heating costs during the colder months.
However, in September 2025, new warnings have surfaced that some state pensioners could lose out on this support due to the £673 income rule. This development has left many retirees worried about their eligibility and the steps they need to take to secure their payment.
What Is the Winter Fuel Payment?
The Winter Fuel Payment is a tax-free annual benefit provided by the Department for Work and Pensions (DWP) to those above a certain age. It is designed to help pensioners cover the rising costs of heating and energy bills during winter.
- Payments are made automatically, typically in November or December, directly into the claimant’s bank account.
- Most pensioners do not need to apply, as eligibility is assessed automatically during a “qualifying week.”
- The benefit is worth between £100 and £300, depending on age, household circumstances, and income.
The £673 Rule Explained
Eligibility for this year’s Winter Fuel Payment will be assessed during the qualifying week of 15–21 September 2025.
- If your weekly income during this period is £673 or less, you will remain eligible.
- If your income exceeds £673, you may risk losing your entitlement.
- For those who are over 80 years old or live with another pensioner, payments may vary, but the £673 rule still applies.
This rule has caught some pensioners by surprise, especially those with small additional earnings that push them just over the limit.
How Much Can Pensioners Receive?
The payment amounts vary depending on circumstances such as age and household type.
| Circumstance | Payment Amount |
|---|---|
| Pensioners under 80 (born before 23 Sept 1959) | Up to £300 |
| Pensioners over 80 | Higher payments available |
| Couples (both entitled, living together) | Different combined rates apply |
These amounts are typically received in November or December 2025, just as heating bills start to rise.
Opting Out: What Pensioners Must Do
Some pensioners may not want to receive the payment if they know they will be required to repay it through their tax code. Finance experts have advised that pensioners who want to opt out must act quickly.
- The deadline is 15 September 2025 (midnight online).
- To opt out, you can fill in a short online form at gov.uk by searching “Winter Fuel Payment opt out.”
- Alternatively, you can call the Winter Fuel Payment Centre at 0800 731 0160, but phone lines close at 6pm.
Missing the deadline could mean receiving the payment and then later having to repay it via adjustments to your tax code.
Why This Matters for Pensioners
With energy costs still high, the Winter Fuel Payment is a financial lifeline for many older households. For those living on a fixed state pension, losing this payment could mean struggling to balance heating with other essentials like food and medication.
At the same time, the government’s income checks ensure the allowance goes to those who need it most. Pensioners whose earnings exceed the threshold may find themselves excluded, raising questions about fairness and adequacy in supporting older residents facing rising living costs.
Key Deadlines
- Qualifying Week: 15–21 September 2025
- Opt-Out Deadline (Online): 15 September 2025, midnight
- Opt-Out Deadline (Phone): 15 September 2025, 6pm
- Payment Window: November–December 2025
The £673 income rule has added a new layer of complexity to the Winter Fuel Payment in 2025. While the allowance continues to provide vital support, many pensioners risk losing out if they cross this threshold during the qualifying week of 15–21 September 2025.
Pensioners should review their income, decide whether to opt out, and ensure they act before the deadline. With energy bills rising, the stakes are high, making it essential to stay informed and prepared.
FAQs
Who qualifies for the Winter Fuel Payment in 2025?
Anyone born before 23 September 1959 and meeting income rules during the qualifying week is eligible.
What happens if my income is over £673?
You may lose eligibility, or if paid, the allowance could be reclaimed through your tax code.
Do I need to apply for the payment?
No. Payments are usually automatic if you’re eligible, but you can choose to opt out before the deadline.