HMRC is preparing to send notifications to millions of retirees who will be required to repay their Winter Fuel Payment. The Winter Fuel Payment, valued up to £300, is distributed by the Department for Work and Pensions (DWP) to individuals above the state pension age.
Individuals earning over £35,000 annually will have their payment reclaimed by HMRC. Repayments for most recipients will be adjusted in their tax code for the 2026/27 fiscal year. The repayment process will occur gradually throughout the tax year and will be managed through the PAYE system. Those who submit self-assessment tax returns will see the adjustment reflected in their 2025/26 tax filing.
Approximately two million state pensioners will be contacted by HMRC to return their Winter Fuel Payment for the winter of 2025/26, with notifications beginning in April. Recipients who have opted out of paper correspondence from HMRC will receive digital notifications regarding changes to their tax codes.
HMRC has clarified that the majority of individuals will repay the Winter Fuel Payment automatically through their tax code, while those registered for Self Assessment will settle the amount via their tax return. Detailed online instructions and a calculator are available to help individuals understand the repayment process.
Recipients eligible for Winter Fuel Payments must have been born before September 22, 1959. If eligible, payments should have been received by November or December. Those who believe they are eligible but have not received payment can make a claim to the Winter Fuel Payment Centre by March 31, 2026.
Individuals can contact the Winter Fuel Payment Centre at 0800 731 0160, or 18001 followed by 0800 731 0160 for Relay UK. Alternatively, written correspondence can be sent to the Winter Fuel Payment Centre in Wolverhampton.
Certain criteria, such as being in hospital for the entire qualifying week or residing in a care home and claiming specified benefits, render individuals ineligible for the Winter Fuel Payment. In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.