Overview
- HMRC started notifying pensioners and changing PAYE tax codes in April 2026 so it can claw back Winter Fuel Payments paid for the 2025–26 tax year.
- Around two million state pensioners are expected to repay the lump sums because the scheme is now means‑tested with a £35,000 taxable‑income threshold.
- Most affected PAYE customers will see roughly £17 extra taken from monthly pay or pensions in 2026–27 for a typical £200 payment, rising to about £33 a month in 2027–28 to recover two years' payments.
- The DWP confirmed payments are fixed by age and circumstances at the qualifying week, with typical amounts of £200 for younger claimants and £300 for older pensioners.
- HMRC and consumer groups warn of scams and say official recovery letters will never ask for bank details or demand payment by text or email so people should use GOV.UK guidance and HMRC tools to check their status.