HMRC is set to send notifications to millions of retirees who will be required to reimburse their Winter Fuel Payment. The Winter Fuel Payment, which can amount to £300, is disbursed by the Department for Work and Pensions (DWP) to individuals above the state pension age threshold.
Individuals earning more than £35,000 annually will have their payment reclaimed by HMRC. The repayment process for most individuals will involve adjustments to their tax code for the 2026/27 fiscal year.
Repayments will be staggered throughout the 2026/27 tax year and collected 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 are expected to refund their Winter Fuel Payment for the 2025/26 winter season. HMRC will commence issuing letters in April for those affected.
If your tax code is modified and you have opted out of paper correspondence from HMRC, you will receive a digital notification outlining the changes.
HMRC has indicated that the majority of individuals required to reimburse the Winter Fuel Payment will do so automatically through their tax code or via their tax return for those registered for Self Assessment. Detailed online guidance and a payment calculator have been provided to assist individuals in understanding the repayment process.
Winter Fuel Payments are made to individuals born before September 22, 1959, who claimed specific benefits during the qualifying week in September 2025. Individuals not claiming these benefits must apply for the Winter Fuel Payment if they meet specific criteria.
If you believe you are eligible for the Winter Fuel Payment but have not received it, you can submit a claim to the Winter Fuel Payment Centre by March 31, 2026, or contact the center via phone or mail. Certain eligibility exclusions apply, such as being hospitalized or imprisoned during the qualifying week, or residing in a care home while claiming specific benefits.
In Scotland, the Winter Fuel Payment has been replaced with the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.
