Pensioners across the UK are being urged to remain vigilant against fraudsters as the recovery process for winter fuel payments commences this month. HM Revenue and Customs (HMRC) has issued a stark warning that scammers may exploit this period to target vulnerable individuals through deceptive texts, emails, and phone calls.
Recovery Process and Scam Risks
Winter fuel payments distributed during the winter of 2025 will be reclaimed from pensioners whose annual income exceeds £35,000. HMRC estimates that nearly two million people are expected to repay their 2025 payment due to this income threshold. For the majority, the recovery will be an automatic procedure, requiring no direct contact with HMRC.
However, the revenue body has recorded over 25,000 referrals related to winter fuel payment scams in the past year alone. Criminals are using the recovery as a pretext to impersonate HMRC, attempting to steal personal and financial information. HMRC emphasises that it will never contact individuals via text or email to request repayment of winter fuel payments or to ask for bank details.
How Recovery Works
For most affected pensioners, the payment will be recovered through an adjustment to their PAYE (pay as you earn) tax code starting in April. This automated process means there is no need for recipients to initiate contact with HMRC. For example, a typical winter fuel payment of £200 will result in PAYE customers with income above £35,000 paying approximately £17 extra per month in tax during the 2026-27 tax year.
Self-assessment taxpayers who file online should see the payment reflected in their 2025-26 tax return, which is due by January 31, 2027. If it does not appear, they must add it manually. Those filing paper returns need to include it on their tax return by October 31, 2026.
Geographic Scope and Official Guidance
This recovery applies throughout the UK, including in Scotland, where the payment is known as the pension age winter heating payment, and in Northern Ireland, where payments were administered by the Department for Work and Pensions. In all cases, HMRC handles the recovery process.
Myrtle Lloyd, HMRC’s chief customer officer, stated: “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.”
Historical Context and Safety Measures
The Government had previously announced plans to restrict eligibility for winter fuel payments, but this was later reversed, with payments restored to the vast majority of pensioners who had previously received them. To combat scams, HMRC advises that suspect texts claiming to be from the agency can be forwarded to 60599, and suspect emails can be sent to phishing@hmrc.gov.uk.
Individuals who believe they may have fallen victim to a scam should immediately notify their bank and contact the police. This proactive approach is crucial in preventing further financial loss and protecting personal data.
