HMRC is set to send notifications to millions of retirees regarding the repayment of Winter Fuel Payments. 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. However, if one’s annual income exceeds £35,000, HMRC will recoup the payment. The reclaim process for most individuals will involve an adjustment to their tax code for the 2026/27 tax year.
Repayments will be spread out over the tax year 2026/27 and collected via the PAYE system. Those who file self-assessment tax returns will see the adjustment reflected in their 2025/26 tax returns. Approximately two million state pensioners are expected to return their Winter Fuel Payment for the winter of 2025/26, with HMRC commencing the notification process in April.
If a taxpayer’s tax code changes and they have opted out of paper correspondence from HMRC, they will receive digital notifications detailing the adjustment. HMRC emphasized that most individuals will repay automatically through their tax code, while those registered for Self Assessment will settle the amount through their tax return.
Winter Fuel Payments are directed to individuals born before September 22, 1959, who claimed specific benefits in the qualifying week of September 15 to 21, 2025. Individuals not receiving these benefits must claim their Winter Fuel Payment if eligible. Those who believe they qualify but have not received payment can submit a claim to the Winter Fuel Payment Centre by March 31, 2026.
To inquire or make a claim, individuals can contact the Winter Fuel Payment Centre at 0800 731 0160 or send correspondence to the designated address. Certain eligibility criteria exclude individuals receiving free hospital treatment or residing in care facilities under specific circumstances. In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, offering varying amounts between £101.70 and £305.10.