HMRC has initiated communication with numerous retirees who will be required to reimburse their Winter Fuel Payment.

The Winter Fuel Payment, valued at up to £300, is disbursed by the Department for Work and Pensions (DWP) to individuals above the state pension age threshold.

Those with an annual income exceeding £35,000 will have their payment reclaimed by HMRC. The repayment process for most individuals will involve an adjustment to their tax code for the 2026/27 fiscal year.

Repayments will be spread out over the course of the 2026/27 tax year and collected through the PAYE system. For individuals who file self-assessment tax returns, the repayment will be reflected in their 2025/26 tax return.

Around two million state pensioners will be required to return their Winter Fuel Payment for the winter of 2025/26.

An HMRC spokesperson stated, “The majority of recipients subject to repaying the Winter Fuel Payment will have the amount deducted automatically through their tax code. Those already enrolled in Self Assessment will settle the amount through their tax return.”

Guidance on the repayment process and a payment calculator have been made available online to assist individuals in understanding whether they are obligated to repay the payment.

Winter Fuel Payments are being distributed to individuals born before September 22, 1959, who were eligible for specific benefits during the qualifying week of September 15 to 21, 2025.

Recipients who did not claim the aforementioned benefits need to apply for the Winter Fuel Payment if they meet certain criteria.

If eligible individuals have not received their Winter Fuel Payment by November or December, they have until March 31, 2026, to make a claim to the Winter Fuel Payment Centre.

To inquire or make a claim, individuals can contact the Winter Fuel Payment Centre by phone at 0800 731 0160 or by mail at Winter Fuel Payment Centre, Mail Handling Site A, Wolverhampton, WV98 1LR.

Certain conditions, such as being hospitalized or in prison during the qualifying week, or residing in a care home while claiming specific benefits, render individuals ineligible for the Winter Fuel Payment.

In Scotland, the Winter Fuel Payment has been replaced by the Pension Age Winter Heating Payment, ranging from £101.70 to £305.10.

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