HM Revenue and Customs (HMRC) has confirmed that state pensioners with an annual income exceeding £35,000 will face additional tax charges of approximately £17 per month to recover Winter Fuel Payments issued in the 2025 to 2026 tax year. The clawback affects nearly two million households across the UK.
How the Recovery Works
The extra monthly charges apply to pensioner households that received Winter Fuel Payments worth between £100 and £300 but whose annual income surpassed the £35,000 threshold. HMRC is recovering these payments automatically through a change in the tax code for the 2026 to 2027 tax year. For a typical Winter Fuel Payment of £200, pensioners will pay about £17 extra per month until the full amount is repaid.
HMRC stated: "For a typical Winter Fuel Payment of £200, PAYE customers with income more than £35,000 will pay approximately £17 per month extra in tax during the 2026 to 2027 tax year to recover their payment."
Impact on Self Assessment and Paper Filers
Pensioners who file Self Assessment online should find the Winter Fuel Payment pre-populated in their 2025 to 2026 tax return, due by January 31, 2027. If it is not shown, they must add it manually. Those filing paper returns must include it by October 31, 2026.
Tax Code Adjustment Example
HMRC provided an example for basic rate taxpayers: a pensioner with total income of £37,710 (comprising £25,737 from a private pension and £11,973 from the State Pension) who received a £200 Winter Fuel Payment would have their Personal Allowance reduced. The new tax code becomes K39, resulting in roughly £17 more tax per month.
Geographic Scope and Scam Warning
The automatic recovery applies across the UK, including Scotland (where the payment is called the Pension Age Winter Heating Payment) and Northern Ireland (where payments were made by the DWP on behalf of the Northern Ireland Executive). In all cases, HMRC handles the recovery. The recovery only affects pensioners who exceeded the income threshold and did not opt out of receiving the payment last year.
HMRC warned pensioners to be vigilant against scams. Myrtle Lloyd, HMRC’s Chief Customer Officer, said: "Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money. I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us."
The extra tax charges began in April 2026, and households should have received a letter or email from HMRC confirming the tax code change. Pensioners must wait for HMRC to take the payment and cannot pay it sooner.
