Following the chancellor’s decision to u-turn on the government’s original decision to abolish winter fuel payments in July 2024, a new £35,000 income threshold now defines who is eligible for the tax free payment.

But there is a big caveat – pensioners had to opt out of the payment by notifying HMRC by 15 September deadline or it would be paid automatically regardless of their financial position.

If they did not do so, HMRC will claw it back in full through their self assessment tax return in 2025-26 or tax code from April 2026.