Over 1.3 million state pensioners with annual incomes exceeding £35,000 are expected to receive a letter, text, or email from HM Revenue and Customs (HMRC) alerting them about adjustments to their tax code to recover the Winter Fuel Payment. This move follows the Department for Work and Pensions (DWP) payouts made at the end of last year.
Recipients of the Winter Fuel Payment, which can be up to £300, who earn more than £35,000 annually will have the amount reclaimed through a change in their tax code during the 2026/27 tax year. According to Money Saving Expert, founded by financial journalist Martin Lewis, this recovery will be processed alongside normal Income Tax payments.
HMRC will begin sending out notifications in early April to retirees who received the Winter Fuel Payment during the last winter season, whose individual incomes exceed the £35,000 threshold, and who do not normally submit self-assessment tax returns.
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Pensioners should promptly inform the Winter Fuel Payment Centre of any changes in their circumstances, such as moving home or entering a care facility, as these factors can influence their entitlement to the payment.
Those who wish to opt out of receiving the Winter Fuel Payment must do so by completing the opt-out form before 11:59 pm on 20 September 2026 or by calling the helpline before 6 pm on 18 September 2026.
If a pensioner’s income is over £35,000 and they have not opted out, HMRC will automatically reclaim the Winter Fuel Payment through the tax system; individuals cannot return the payment themselves. It is possible to opt back in by contacting the Winter Fuel Payment Centre before 31 March 2027 to receive a payment for the winter of 2026 to 2027.