Overview
- HMRC confirmed on Sunday that it will recover Winter Fuel Payments made in 2025/26 by altering recipients’ tax codes during the 2026/27 tax year and may collect two years’ payments via tax-code changes in 2027/28.
- The recovery applies where an individual’s taxable income exceeds £35,000 and is assessed per person in a household rather than by household income.
- The payments are age‑tiered — typically £300 for the oldest recipients and £200 for younger state pensioners — and HMRC gives examples showing about £17 extra tax a month for a single £200 payment rising to about £33 a month if two years are collected together.
- The opt‑out window for the 2025/26 payment is closed but reopens on 1 April 2026 for the 2026/27 winter payment and can be exercised through the Winter Fuel Payment Centre.
- HMRC guidance sets out what counts as taxable income and excludes items such as ISA interest, capital gains, Pension Credit, Attendance Allowance and the Winter Fuel Payment itself, and officials warn pensioners to check tax codes, seek advice if incomes sit near the threshold and beware of related scams.