HM Revenue & Customs is to claw back about £17 per month from state pensioners whose income is over £35,000 per year. HMRC wants pensioner households that are over that income threshold to repay Winter Fuel Payments issued in the tax year 2025-26.
Until the payment has been fully recovered, HMRC will automatically take the extra back each month using a tax code change for this tax year. It is expected to affect nearly two million households. HMRC said in PAYE for the 2026-27 tax year for a typical winter payment of £200, about £17 per month will be clawed back.
In the tax year 2027-28, deductions are set to rise temporarily to about £33 per month for a typical £200 payment.
The Government department said this is because it will be recovering payments for both 2026 and 2027 Winter Fuel Payments in the 2027-28 tax year.
From the 2028-29 tax year onwards, monthly deductions will fall back to about £17.
The payment should be pre-populated for pensioners in Self Assessment who file their 2025-26 tax return online.This is due by January 31, 2027.
Pensioners should check the payment appears and if it does not appear, then it should be entered manually.
People who file returns on paper will need to add the payment to their tax return by October 31, 2026.
The extra charges started in April, with households having received a letter or email from HMRC to confirm their tax code change for Winter Fuel Payment claw backs.
As a result, pensioners will fork out more in tax per month until the payment for 2025-26 is paid back in full.
Automatic Winter Fuel Payment recovery for those whose annual income is over £35,000 applies across the whole of the UK.
HMRC has warned people to beware scams, telling pensioners it would never ask for bank details or get in touch by text or email to demand repayment.
Myrtle Lloyd from HMRC said anyone who is unsure should visit the Gov.uk website to check how their payment will be recovered.
