Crucially, the payments, which range from £100 to £300, are no longer universal.
HMRC demand letters sent out to state pensioners born before 1960
HMRC is sending a demand letter to millions of state pensioners born before 1960. Under a Labour Party government u-turn, the Departmnet for Work and Pensions (DWP) has handed Winter Fuel Allowances to NINE MILLION more pensioners over winter.
The eligibility is being of state pension age – so born before 1960 – and fitting into certain criteria. But crucially, the payments, which range from £100 to £300, are no longer universal.
Instead, HMRC will claw back the perk from those who have an income over £35,000. The clawback system means anyone who received the payment in the winter of 2025/26 will be sent a crucial letter.
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Retirees with income over £35k are being contacted by the tax authority about a change to their tax code to return the funds.
The letters from the taxman are being sent out to approximately 1.3 million pensioners who don’t file Self-Assessment Tax Returns about, according to BBC and ITV star Martin Lewis’ team at Money Saving Expert.
HMRC will collect their payment through their Self Assessment tax return for 2025 to 2026.
For online filers, where possible HMRC will include the 2025 payment on their online Self Assessment return which is due by 31 January 2027. It will show as either a Winter Fuel Payment charge or Pension Age Winter Heating Payment charge.
Customers should check their winter payment is on their online return and include it themselves if not.
Paper filers will need to include it on their paper return, which is due by 31 October 2026.
Tax.org explained: “In February 2026 customers may receive a notification of their tax code for the 2026 to 2027 tax year which does not yet include adjustments for their winter payment.
“They do not need to take any action or call HMRC. They should receive an updated tax code, which reflects recovery of their winter payment, in early April 2026.”