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State Pension Rises as HMRC Claws Back Winter Fuel Payments From Higher Earners

About 1.3 million pensioners will have tax codes changed to recover last winter’s £200–£300 heating grants.

Overview

  • - The Triple Lock 4.8% increase took effect Monday, lifting the full new State Pension by about £575 a year for those with a full National Insurance record.
  • - The DWP has reinstated automatic Winter Fuel Payments for 2026/27, paying £200 or £300 in November–December to eligible people born before 27 June 1960 in England and Wales.
  • - HMRC is changing PAYE tax codes for individuals with total income above £35,000 to reclaim the heating payments, with about £17 a month taken in 2026/27 for a typical £200 award.
  • - Collections rise in 2027/28 to around £33 a month to recover two years at once, and those who file Self Assessment will have the payment added to their 2025/26 tax return.
  • - The state pension age is moving from 66 to 67 between April 2026 and April 2027, and the IFS is urging clearer DWP letters after finding many near‑retirees do not know their correct pension age.