HMRC is set to send notifications to numerous retirees who will be required to reimburse their Winter Fuel Payment. This 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 reimbursement process will occur through adjustments to their tax codes for the 2026/27 fiscal year. Those who file self-assessment tax returns will see the adjustment reflected in their 2025/26 return.
Around two million state pensioners will need to refund their Winter Fuel Payment for the winter of 2025/26, with HMRC initiating the correspondence in April. If your tax code changes and you have opted out of paper correspondence from HMRC, you will receive digital notifications regarding the adjustments.
An HMRC representative stated that most individuals subject to repayment will have it automatically deducted through their tax codes. For those registered for Self Assessment, the amount will be recouped through their tax filings. HMRC has provided clear online guidance and a repayment calculator to assist individuals in understanding the process.
Winter Fuel Payments are extended to individuals born before September 22, 1959, who qualify based on specific benefits received during a set period. If eligible individuals have not received their payment, they can make a claim to the Winter Fuel Payment Centre by March 31, 2026.
In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.