HMRC has confirmed it will recover Winter Fuel Payments and the Winter Heating Payment (in Scotland) through a clawback scheme for Department for Work and Pensions (DWP) state pensioners.
Income Threshold and Individual Assessment
If a customer's total individual income for the 2025-26 tax year is £35,000 or less, they will keep their 2025 Winter Fuel Payment. However, if the income exceeds £35,000, HMRC will reclaim the payment. In households where multiple people receive payments, each person's income is assessed separately. For example, if Person A earns £36,000 and Person B earns £22,000, HMRC will reclaim the payment from Person A, but Person B will retain theirs.
Repayment via Tax Code Changes
HMRC will automatically collect the payment through a change to the customer's tax code from April 2026, unless they already file a Self Assessment tax return. This means the tax code for the 2026-27 tax year will be adjusted. For a typical payment of £200, approximately £17 per month will be deducted. For the 2027-28 tax year, deductions rise to roughly £33 per month because HMRC will simultaneously recover payments for both 2026 and 2027.
Customers do not need to take any action or call HMRC. In February 2026, they may receive a notification of their tax code for the 2026-27 tax year, which may not yet include adjustments for their winter payment. They should receive an updated tax code reflecting recovery of their winter payment in early April 2026.
Self Assessment Filers
For online filers, HMRC will include the 2025 payment on their online Self Assessment return, which is due by 31 January 2027. It will appear as either a Winter Fuel Payment charge or Pension Age Winter Heating Payment charge. Customers should check that their winter payment is included and add it themselves if it is not. Paper filers must include it on their paper return, which is due by 31 October 2026.
Opting Out of Future Payments
Anyone who expects their total individual income from private pension, state pension, and other sources to exceed £35,000 can opt out of future payments instead of having HMRC reclaim them. Customers in England, Wales, and Northern Ireland can opt out via DWP's online form on GOV.UK from 1 April 2026.
