DWP confirms September deadline for state pensioners born on or before this date | Personal Finance | Finance
Worried senior man sitting at home, calculating domestic bills with a laptop and calculator, feeling stressed and frustrated over finances (Image: alvaro gonzalez via Getty Images)
Millions of pensioners are being urged to examine their finances immediately or risk being hit with an unforeseen tax bill, following a fresh alert issued by the Government.
The DWP has reminded pensioners born on or before September 22, 1960, that anyone earning more than £35,000 will have the payment recovered through the tax system, meaning the funds could land in their bank account only to be reclaimed at a later stage by HMRC. Officials have cautioned that those who would rather not receive the payment at all must take action ahead of a series of deadlines in September.
Anyone wishing to opt out must either:
Pensioners will need their National Insurance number to hand when making the request. The DWP has stressed that people cannot simply return the money themselves once it has been deposited.
Instead, HMRC will recover it automatically through the tax system from those whose annual income exceeds £35,000, reports Wales Online.
Stressed mature man having problem with domestic finances, calculating domestic bills and managing expenses at home (Image: draganab via Getty Images)
The opt-out decision is also designed to carry forward beyond this winter. Any pensioner who chooses to decline the payment will remain automatically opted out in future years, unless they contact the Winter Fuel Payment Centre to opt back in.
Those who wish to resume receiving the payment must notify the DWP by March 31, 2027, in order to be included for the 2026-27 winter payment. The department is also warning pensioners to report any change in their circumstances as swiftly as possible.
Any alteration in circumstances, such as relocating, moving into a care facility or anything else that could affect eligibility, must be reported promptly. Officials have warned that failing to supply correct information may result in recipients being obliged to reimburse amounts if they have received overpayments.
The latest warning follows one of Labour’s most controversial policy reversals.
In July 2024, Chancellor Rachel Reeves restricted Winter Fuel Payments to pensioners receiving Pension Credit or certain other means-tested benefits, describing the decision as a “tough choice” required to help repair the public finances.
The decision sparked fierce political backlash, with charities cautioning that millions of elderly individuals would face choosing between heating their properties and purchasing food during the winter period. Labour MPs also voiced concerns that numerous low-income pensioners were missing out because they were eligible for Pension Credit but had never submitted an application.
Facing mounting pressure, the Government executed a U-turn in June 2025, declaring that Winter Fuel Payments would be reinstated for all pensioners beyond State Pension age in England and Wales, without needing to claim a qualifying benefit.
The restored programme, nevertheless, arrived with a new condition. Pensioners with annual incomes surpassing £35,000 would still obtain the payment initially, but HMRC would subsequently recover the complete sum through the tax system.
Campaigners have argued that the arrangement risks creating confusion amongst many elderly people, who may not realise that the payment could eventually increase their tax liability. With the September deadlines rapidly approaching, the DWP is urging anyone who believes they could be affected to check their circumstances now, rather than facing an unwelcome surprise later in the year.
Pensioners wanting further information can contact the Winter Fuel Payment Centre on 0800 731 0160, available between 8am and 6pm, Monday to Friday, use the Relay UK service, or write to the Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.
