Thousands of state pensioners across the UK are being warned they may have to repay this winter's £300 Winter Fuel Payment directly to the tax office.
Who is affected by the repayment rule?
The warning specifically affects individuals of state pension age, which currently means those aged 66 or over, born in 1959 or before. However, only those with a total taxable income exceeding £35,000 will be required to hand the money back.
HM Revenue and Customs (HMRC) issued the alert through its social media channels, including X (formerly Twitter), Bluesky, and Facebook. The message was clear: "Some people will need to pay back their Winter Fuel Payment if their income is over £35,000."
How will the money be recovered?
Pensioners do not need to take immediate action. HMRC has outlined two primary methods for reclaiming the payment. For those who complete a Self Assessment tax return, the £300 will be added to their tax bill for the 2025/26 year.
For pensioners who do not file a tax return, the amount will be recovered by adjusting their PAYE tax code for the 2026/27 tax year. This means they will pay slightly more tax each month until the £300 is recovered.
The Association of Taxation Technicians (ATT) provided crucial clarification, noting that the clawback is not tapered. This means that even £1 of income above the £35,000 threshold will trigger the requirement to repay the entire £300 payment.
Check your status now
The Department for Work and Pensions (DWP) has developed an online calculator to help pensioners check whether they will be affected. HMRC is urging people to use this tool, stating it "only takes a few minutes to check."
The eligibility for the original payment was determined during the 'qualifying week' of 15 to 21 September 2025. It is important to note that any money received from the Winter Fuel Payment does not affect other benefits a pensioner might be receiving.
Looking ahead, from April 2027, HMRC plans to recover any Winter Payments within the same tax year they are paid, streamlining the process for future years.
