HMRC is set to send notifications to numerous retirees who will be required to reimburse their Winter Fuel Payment. The Winter Fuel Payment, valued at up to £300, is distributed by the Department for Work and Pensions (DWP) to individuals above the state pension age.
Individuals earning more than £35,000 annually will have their payment reclaimed by HMRC. The repayment process will involve adjusting tax codes for the 2026/27 fiscal year for most recipients, spreading the repayments over the course of the year and collecting them through the PAYE system. Those who submit self-assessment tax returns will see the adjustment reflected in their 2025/26 tax return.
Around two million state pensioners are expected to refund their Winter Fuel Payment for the winter of 2025/26, with HMRC initiating the communication process starting in April. If recipients have chosen digital notifications over paper letters from HMRC, they will receive electronic updates regarding any tax code alterations.
HMRC emphasized that the majority of individuals subject to repayment will have it automatically accounted for through their tax code. For those registered for Self Assessment, the repayment will be managed through their tax return. Detailed online guidance and a repayment calculator have been provided to assist individuals in understanding the repayment process.
Winter Fuel Payments are disbursed to individuals born before September 22, 1959, who qualify based on specific benefits received during a designated week in September 2025. Recipients who did not claim these benefits must apply for the Winter Fuel Payment if they meet certain conditions.
Recipients who believe they are eligible but have not received their payment can make a claim to the Winter Fuel Payment Centre by March 31, 2026. To inquire further or make claims, individuals can contact the Winter Fuel Payment Centre via phone or mail using the provided contact details.
Certain eligibility criteria exclude individuals who were hospitalized or imprisoned during specific periods. In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment, ranging between £101.70 and £305.10.