Overview
- HMRC is sending letters and issuing revised tax codes to pensioners whose individual taxable income in 2025/26 exceeded £35,000 to recover the Winter Fuel Payment.
- Repayments will typically be £200 for those born between 22 September 1945 and 21 September 1959 or £300 for those born before 22 September 1945, with entitlement assessed per person rather than per household.
- Most recoveries will be spread over the 2026/27 PAYE year through adjusted codes, while Self Assessment taxpayers will settle through their 2025/26 return, with a £200 repayment equating to about £17 a month.
- Around two million pensioners are expected to be affected, with the threshold applying to total gross personal income including state and private pensions, earnings, savings interest, dividends, rental income and taxable benefits.
- Pensioners who were not paid automatically must claim by 31 March 2026, as DWP confirms higher Pension Credit rates from April 2026 and Scotland concludes its separate Pension Age Winter Heating Payments of up to £305.10 by 28 February.