HM Revenue & Customs (HMRC) is issuing demand letters to millions of state pensioners born before 1960 regarding their Winter Fuel Payments (WFP). In a policy reversal under the Labour government, the Department for Work and Pensions (DWP) extended the WFP to nine million additional pensioners over the winter season.
Eligibility for the Winter Fuel Payment is linked to being of state pension age—meaning those born before 1960—and meeting specific criteria. However, these payments, which range from £100 to £300, are no longer universally guaranteed.
Importantly, HMRC will recover the payment from pensioners with an annual income exceeding £35,000. This clawback applies to anyone who received the WFP during the 2025/26 winter period, triggering the issuance of letters from HMRC.
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Approximately 1.3 million pensioners who do not submit a Self-Assessment Tax Return will receive correspondence from HMRC, advising of a change to their tax code to reclaim the funds.
For those who file Self Assessment returns online, HMRC will incorporate the 2025 payment into their 2025-2026 tax return, due by 31 January 2027. The payment will appear as either a “Winter Fuel Payment charge” or “Pension Age Winter Heating Payment charge.” Customers should verify that this charge appears on their return and add it manually if it does not.
Paper filers will need to include the payment adjustment on their paper tax return, which has a deadline of 31 October 2026.
According to Tax.org, pensioners may receive a tax code notification in February 2026 for the 2026-2027 tax year that initially does not reflect the Winter Fuel Payment adjustment. Pensioners do not need to take any action or contact HMRC at this stage; an updated tax code reflecting the recovery of the payment will be issued in early April 2026.