Millions of pensioners will have to pay back their Winter Fuel Payment as HMRC rules change. The tax office will contact around 1.3 million pensioners over the next few weeks to inform them of this, as it aims to recover Winter Fuel Payments worth up to £300 that were sent to pensioners in England, Wales and Northern Ireland last winter. Some higher earners will now have to repay this.

Pensioners who earn more than £35,000 per year are automatically given the payment, but then have to repay it through tax. These pensioners will be contacted by letter, text or email to tell them their tax code is changing. If you earned above the limit but received the Winter Fuel Payment, it will now have to be paid back. However, pensioners can opt out in the future if they don't want to receive the payment just to pay it back through tax. Depending on personal circumstances, state pensioners get between £100 and £300 in the Winter Fuel Payment to help with winter energy costs.

After a rule change in 2024, only those receiving Pension Credit are entitled to the Winter Fuel Payment. Before that, anyone over the age of 66 got it.

The rule change has since been reversed. Pensioners will be contacted by HMRC regarding paying back the Winter Fuel Payment if:

• They earn more than £35,000 per year


• They received a Winter Fuel Payment in winter 2025


• They don't usually complete a self-assessment tax return

Most pensioners won't have to do anything, as HMRC will automatically change their tax code, which lets their pension provider know how much tax to charge every month. The amount paid back through tax per month will be around £17.

Deductions may temporarily increase to around £33 a month in the next tax year, as HMRC might be collecting payments for two separate winters.

Pensioners who are registered for self-assessment will not receive any communication, as the payment will automatically be included on your tax return for 2025-26.

There are two ways state pensioners can opt out of receiving the Winter Fuel Payment if they are higher earners. They can call the helpline on 0800 731 0160 before 6pm on 18 September 2026 or complete the opt-out form on Gov.uk before 11.59pm on 20 September 2026.

While the payment is slightly different for pensioners in Scotland, HMRC will collect refunds in the same way.