6. Tax, other benefits and the benefit cap
Social fund loans and payments are not
taxable
. However, it is intended that from the winter of 2025/26, winter fuel payments to people not entitled to pension credit or universal credit and who have a personal taxable income of over £35,000 a year will be ‘recovered through the tax system’.
1Explanatory Memorandum to The Social Fund Winter Fuel Payment Regulations 2025 No.969They are disregarded as income and capital for means-tested benefits, and do not affect entitlement to non-means-tested benefits.
Social fund loans and payments are not specified benefits for the benefit cap.