HMRC is set to send notifications to millions of retirees who will be required to reimburse their Winter Fuel Payment. This payment, valued at up to £300, is issued by the Department for Work and Pensions (DWP) to individuals above the state pension age.
Those earning more than £35,000 annually will have their payment reclaimed by HMRC, typically through an adjustment in their tax code for the 2026/27 tax year. The repayment will be spread across the tax year and collected via the PAYE system. For individuals submitting self-assessment tax returns, the repayment will be reflected in the 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 you have opted out of paper correspondence from HMRC, any tax code changes will be communicated digitally.
An HMRC representative stated that most individuals will automatically repay the Winter Fuel Payment through their tax code. Those registered for Self Assessment will settle the payment via their tax return. Online resources and a payment calculator are available to help individuals understand the repayment process.
Winter Fuel Payments are disbursed to individuals born before September 22, 1959, who claimed specific benefits during the qualifying week in September 2025. If not eligible for automatic payment, individuals can claim the Winter Fuel Payment by March 31, 2026, if they believe they qualify.
To inquire about eligibility or make a claim, individuals can contact the Winter Fuel Payment Centre at 0800 731 0160. In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.
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