HM Revenue and Customs (HMRC) has begun reaching out to state pensioners whose total income exceeded £35,000 after receiving Winter Fuel Payments from the Department for Work and Pensions (DWP). Those who received payments between £100 and £300 may be required to repay the amounts if their income surpasses the eligibility threshold.
Most repayments will be handled automatically by adjusting tax codes during the 2026 to 2027 tax year. Pensioners who expect their income to exceed the threshold can also opt out of future Winter Fuel Payments starting from 1 April 2026.
Rebecca Wilcox, a BBC personal finance expert, explained on BBC Morning Live why these repayments are necessary, how they will be collected, and how to avoid scams.
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She said, “In most cases, repayments will be recovered via the tax system. HMRC will modify the tax codes, resulting in slightly higher tax deductions each month to cover the underpayment. For example, someone who received £200 might see a monthly income reduction of about £17 throughout the repayment period.”
For those who file Self Assessment tax returns, the repayment will be added to their 2025 to 2026 tax bill. Anyone who believes there has been a mistake can challenge HMRC’s decision.
Typically, this change means pensioners will repay roughly £33 a month if they have received the Winter Fuel Payment.
Wilcox also warned of increasing scams around this issue, noting, “Fraudsters often pose as government officials requesting personal or payment information.”
HMRC reassures pensioners that official letters regarding Winter Fuel Payment repayments clearly state no action is required and do not request personal information or payments. If you receive any suspicious messages regarding these payments, it is advised to disregard and dispose of them immediately.