HMRC is set to send notifications to millions of pensioners who will be required to refund their Winter Fuel Payment. This payment, valued up to £300, is distributed by the Department for Work and Pensions (DWP) to individuals above state pension age. However, if one’s annual income exceeds £35,000, HMRC will reclaim the payment. The repayment process will involve adjusting tax codes for the 2026/27 tax year, dispersing repayments throughout the year through the PAYE system. For those who file self-assessment tax returns, the repayment will be factored into the 2025/26 tax return.
Around two million state pensioners are expected to repay their Winter Fuel Payment for the winter of 2025/26, with HMRC commencing the notification process in April. If individuals have opted out of paper communication from HMRC, they will receive digital notifications regarding any tax code adjustments. HMRC emphasizes that most repayments will be automated through tax codes, while those registered for Self Assessment will settle the payment through their tax return. Detailed online guidance and a repayment calculator have been provided to assist individuals in understanding the repayment process.
Winter Fuel Payments are designated for individuals born before September 22, 1959, who claimed specific benefits during the qualifying week of September 15 to 21, 2025. Those who did not claim these benefits must apply for the Winter Fuel Payment. If eligible individuals have not received their payment by November or December, they can make a claim to the Winter Fuel Payment Centre by March 31, 2026. Exclusions from eligibility include being in hospital for the entire qualifying week or being incarcerated during that period. Additionally, residing in a care home from June 23, 2025, onwards and claiming certain benefits like Universal Credit and Pension Credit also disqualifies individuals.
In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.