HMRC is set to initiate correspondence with a large number of retirees who will have to reimburse their Winter Fuel Payment. The Winter Fuel Payment, provided by the Department for Work and Pensions (DWP), can amount to £300 for individuals above the state pension age threshold.
Individuals earning more than £35,000 annually will see their payment reclaimed by HMRC. The repayment process for most individuals will involve an adjustment in their tax code for the 2026/27 fiscal year. Repayments will be staggered throughout the tax year and collected via 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 will be required to refund their Winter Fuel Payment for the winter of 2025/26, with HMRC commencing the communication process in April. If your tax code is altered and you have opted out of paper notifications from HMRC, you will receive a digital notification outlining the change instead.
HMRC has stated that the majority of individuals obliged to repay the Winter Fuel Payment will do so automatically through their tax code. For those already registered for Self Assessment, the repayment will be handled through their tax return. HMRC has made available online guidance and a calculator to help individuals understand the repayment process.
Winter Fuel Payments are distributed to individuals born before September 22, 1959, who claimed specific benefits during the qualifying week of September 15 to 21, 2025. If you did not claim these benefits, you must apply for the Winter Fuel Payment under certain conditions.
If you believe you are eligible for the Winter Fuel Payment but have not received it, you can make a claim to the Winter Fuel Payment Centre by March 31, 2026. Eligibility criteria exclude individuals receiving free hospital treatment or being in prison during the qualifying week, as well as those residing in a care home and claiming certain benefits.
In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.
