Pensioners
Pensioners who received a £200 Winter Fuel Payment but have individual taxable incomes above £35,000 will face an extra tax charge of around £17 per month, HM Revenue and Customs (HMRC) has confirmed.
Approximately 900,000 affected pensioners will be required to repay the full amount through their self-assessment tax return for the 2025/26 tax year. Online returns are due by 31 January 2027, while paper returns must be submitted by 31 October 2026.
The repayments follow the government’s decision to reinstate the Winter Fuel Payment for the 2025/26 winter while introducing an income threshold. In 2025, Chancellor Rachel Reeves eased earlier plans for stricter means-testing, allowing pensioners earning £35,000 or less to keep the payment. Those above the threshold must repay it in full.
How the income test works
Eligibility
Eligibility is based on an individual’s gross income — total income before any deductions. This includes the state pension, private pensions, dividends, trust income, savings interest and other sources.
The test is applied on an individual basis, even in households with multiple pensioners. For example, a pensioner with £36,000 income would repay the payment, while their partner with £22,000 income would retain theirs.
The government has made an online tool available to help pensioners check whether their income exceeds the £35,000 threshold.
Scam warning
As repayments begin, HMRC is urging pensioners to remain vigilant against scams. The tax authority will never contact individuals by text or email demanding repayment of the Winter Fuel Payment or requesting bank details.
“Myrtle Lloyd, chief customer officer at HMRC, said scammers could use fake letters, emails, calls and texts asking for payments,” the authority warned.
Opting out of future payments
Pensioners who do not wish to receive the Winter Fuel Payment in 2026/27 — and therefore avoid future tax code adjustments — can opt out by completing an online form before 11:59pm on 20 September 2026, or by calling the Winter Fuel Payment Centre helpline on 0800 731 0160 before 6pm on 18 September.
Those who opt out can reverse their decision and opt back in if their circumstances change. To receive the payment for winter 2026/27, they must contact the helpline before 31 March 2027.
Note: Residents of Scotland are not eligible for the Winter Fuel Payment but may qualify for the separate Pension Age Winter Heating Payment.
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