On 16 June 2025, ICB advised about the 2025 return of the Winter Fuel Payment in England and Wales. Whilst this will be paid to all, HMRC will recover this payment from individuals via PAYE (the tax code) or Self-Assessment where their systems indicate the income is over £35,000 in the tax year.
To complete the UK picture:
- In Scotland, the Winter Fuel Payment in Scotland will not be paid by the Department for Work and Pensions (DWP) as it is now devolved to Social Security Scotland and renamed the Pension Age Winter Heating Payment. On 18 June 2025, Social Justice Secretary Shirley-Anne Somerville confirmed that legislation will be made in the Scottish Parliament to mirror the recovery mechanism (by HMRC where income is over £35,000);
- In Northern Ireland, whilst this is not devolved, the payment is made by the Department for Communities (DfC). On 10 June 2025, Minister Gordon Lyons MLA updated the Northern Ireland Assembly and legislation will be laid to mirror the recovery mechanisms in England and Wales and Scotland
For Bookkeepers
We now have the UK-wide picture of how the Winter Fuel Payment / Winter Heating Payment will be recovered by HMRC where they recognise that income is over £35,000. This is the most important point to take from the re-instatement of the payment.
