HMRC is set to send notifications to a large number of retirees who will be required to refund their Winter Fuel Payment. The Winter Fuel Payment, provided by the Department for Work and Pensions (DWP), can reach up to £300 and is distributed to individuals above the state pension age.
Individuals earning more than £35,000 annually will have their payment reclaimed by HMRC. The repayment process will involve adjusting their tax code for the tax year 2026/27 for the majority of recipients. Those who submit a self-assessment tax return will see the adjustment reflected on their 2025/26 tax return.
Around two million state pensioners will need to reimburse their Winter Fuel Payment for the winter of 2025/26, with HMRC commencing the notification process in April. If a recipient’s tax code changes and they have opted out of paper correspondence from HMRC, they will receive digital notifications outlining the adjustments.
HMRC emphasized that most individuals will automatically repay the Winter Fuel Payment through their tax code, while those registered for Self Assessment will settle it 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 disbursed to individuals born before September 22, 1959, who claimed specific benefits during the qualifying week of September 15 to 21, 2025. Recipients who did not claim these benefits must submit a claim by March 31, 2026, if they believe they are eligible but have not received payment.
Eligibility is excluded for individuals receiving free hospital treatment during the qualifying week and the preceding year, or incarcerated during the qualifying week. Those residing in a care home since June 23, 2025, and claiming certain benefits like Universal Credit and Pension Credit are also ineligible. In Scotland, the Winter Fuel Payment has been substituted with the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.