MORE than one million pensioners could have to pay back their winter fuel payment, it has been revealed.
Most retirees receive the Winter Fuel Payment automatically if they are eligible for it.
The payment is worth up to £300 to help with rising heating bills and is paid directly into recipient’s bank accounts.
But if their annual income from work, a private pension or savings interest is more than £35,000 then HMRC will claw it back.
It is expected that around 1.3million pensioners who received the Winter Fuel Payment last year will be forced to hand it back.
HMRC is writing to pensioners with an income of more than £35,000 to let them know that their tax code will be updated to pay back the benefit.
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The amount they will need to pay back depends on their age.
Pensioners who were born between September 22, 1945 and September 21, 1959 will need to repay their £200 payment.
Meanwhile, those who were born before September 22, 1945 will need to repay their £300 payment.
The repayments will typically be spread across the whole year through PAYE, which is the system that takes tax from your pay when you are employed.
In this case, your tax code will be updated for the 2026/27 tax year.
If you received a £200 payment then roughly £17 will be deducted from your income every month.
Alternatively, if you file a self-assessment tax return, it will be paid back that way.
If you file a paper Self Assessment tax return then you will need to include the payment on their 2025 to 2026 tax return, which is due by October 31, 2026.
Anyone who thinks they are wrongly being charged can challenge the repayment with HMRC.
The Sun has contacted HMRC for comment.
You can check if you will need to pay back the payment here.
Why do I need to pay back my Winter Fuel Payment?
In 2024, the rules around the Winter Fuel Payment changed, and only people on certain benefits got the Winter Fuel Payment.
This decision caused a lot of anger.
If you received the state pension and your annual taxable income was under £35,000, you should have qualified for the winter fuel payment.
If your taxable income was above £35,000, you may have still been sent the payment unless you opted out by the September 15, 2025 deadline.
If you did not opt out, HMRC said it would recover the Winter Fuel Payment through your tax code from April 2026 or add it to your self‑assessment bill.
If you live alone, you should have received £200 if you were born between 22 September 1945 and 21 September 1959, or £300 if you were born before 22 September 1945.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to.
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Who can’t get a winter fuel payment?
You can get a Winter Fuel Payment if you were born before September 22 1959 and live in England or Wales.
But a small group of individuals will not be eligible, including those who:
- Live outside England and Wales
- Were in hospital getting free treatment for the whole of the week of September 15-21 2025 and the year before that
- Need permission to enter the UK and your granted leave says that you cannot claim public funds
- Were in prison for the whole of the week of September 15-21 2025