Andy Burnham and John Healey are cutting Winter Fuel Payments for 2.2 million pensioners based on their income, affecting around 12.3 million people expected to receive the benefit across the UK in 2025/26. Of these, roughly 2.2 million are forecast to have incomes above £35,000, meaning they will have any payment withdrawn through the Winter Fuel Payments Charge.
Eligibility changes and payment numbers
In 2025/26, around 10.2 million people were expected to benefit from Winter Fuel Payment or PAWHP schemes from the Department for Work and Pensions (DWP). The payments will be administered this October or November under Prime Minister Andy Burnham and Chancellor John Healey. This compares to around 1.5 million people who received payments in 2024/25, when eligibility was linked to receipt of means-tested benefits.
HMRC collection details
HMRC will be taking £17 a month this year, rising to £33 a month from next April, the tax department has confirmed on its website. This amount will be higher for older pensioners who get the larger Winter Fuel Payment but don't qualify for it, the tax arm also confirmed. Overall pension payments recently went up again by hundreds of pounds under triple lock rules back in April, and will do so again next year too.
Government explanation on repayment
On its website, the Government explained: "If your total income is over £35,000, you’ll need to pay back the payment. HMRC will automatically collect the payment through your tax code unless you already file self-assessment tax returns. This means we’ll change your tax code for the 2026 to 2027 tax year. For a typical payment of £200, we’ll deduct approximately £17 per month. In the 2027 to 2028 tax year, we’ll deduct approximately £33 per month for a typical payment of £200. This is because we’ll be collecting your payments from 2026 and 2027. It will then return to approximately £17 per month for the 2028 to 2029 tax year."
