HMRC is set to send out notifications to a large number of 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 payments recouped by HMRC. The repayment process will involve adjustments to tax codes for the 2026/27 fiscal year, spreading the repayments across the year and collecting them through the PAYE system. Those who file self-assessment tax returns will see the adjustment reflected in their 2025/26 tax return.
Around two million state pensioners will need to return their Winter Fuel Payment for the winter of 2025/26, with HMRC commencing the notification process in April. If recipients have opted out of paper communications from HMRC, they will receive digital notifications regarding the tax code changes.
HMRC emphasized that most individuals will automatically repay the Winter Fuel Payment through their tax code, while those registered for Self Assessment will settle the amount through their tax return. Online resources are available to guide individuals on the repayment process, including a calculator to determine if they are liable for repayment.
Winter Fuel Payments are issued to individuals born before September 22, 1959, who claimed specific benefits within the qualifying week of September 15 to 21, 2025. Recipients who did not claim these benefits must apply for the Winter Fuel Payment by March 31, 2026, if they believe they are eligible.
To make a claim or inquire further, individuals can contact the Winter Fuel Payment Centre at 0800 731 0160 or 18001 followed by 0800 731 0160 for Relay UK. Alternatively, correspondence can be sent to the Winter Fuel Payment Centre in Wolverhampton.
Certain criteria disqualify individuals from receiving the Winter Fuel Payment, such as extended hospital stays, incarceration during the qualifying week, or residing in a care home while claiming specific benefits. In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.
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