The Scottish Government has announced that individuals with income exceeding £35,000 and in receipt of the pension age Winter Heating Payment have until 10 October 2025 to opt out of receiving it. Failing to opt out will allow HMRC to claw back the payment via an individual's PAYE tax code or under Self Assessment.
The pension age Winter Heating Payment, previously the Winter Fuel Allowance, in Scotland will be paid to qualifying individuals from November onwards.
The payment:
- Is generally paid automatically, with some individuals having to make a claim.
- Will be between £101.70 and £305.10.
- Will be confirmed via a letter from Social Security Scotland during November.
- Is non-taxable.
In line with The rest of the UK, if an individual's income exceeds £35,000, HMRC will reclaim the payment via the tax system. In most cases, the payment will be claimed back through the individual's PAYE code or under Self Assessment.
If an individual is aware that their income will exceed the threshold for the tax year, they may wish to 'opt out'. The deadline for opting-out for the 2025-26 tax year has now passed (10 October 2025).
Useful guides on this topic
What is the 2025-26 PAYE tax code?
What is the 2025-26 PAYE tax code? What do the different types of tax code prefixes and suffixes mean?
External links
HMRC:
Understanding tax and your pension
GOV:
Paying back the Winter Fuel Payment
Scottish Government: