HMRC has warned “some” people will have to pay back their Winter Fuel Payment cash and it’s all because of one reason
James Rodger Content Editor
11:48, 13 Nov 2025
HMRC has issued a warning that “some” state pensioners born before 1959 (Image: Laurence Berger via Getty Images)
HMRC has issued a warning that “some” state pensioners born before 1959 will be required to return Winter Fuel Payment funds. Winter Fuel Allowances of £300 have been distributed to individuals of state pension age, thus those aged 66 – born in 1959 or earlier – this winter.
However, under the rules of the Labour Party and the Department for Work and Pensions (DWP), retirees may have to repay the money. “Did you know?” queried the taxman on X, formerly known as Twitter, as well as Bluesky and Facebook.
“Some people will need to pay back their Winter Fuel Payment if their income exceeds £35,000. You don’t need to do anything at present, as it will be repaid later either automatically through your tax code or by including it in your tax return for 2025/26.
“Not sure if this applies to you? It only takes a few minutes to check with our online calculator.”
The amount you receive is based on when you were born and your circumstances between 15 and 21 September 2025. This is referred to as the ‘qualifying week’, reports Birmingham Live.
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Any money you receive will not impact your other benefits. HMRC will reclaim your Winter Fuel Payment by either adjusting your tax code for the 2026 to 2027 tax year – or adding the amount to your 2025 to 2026 Self Assessment tax return.
The ATT stated: “Winter Payments will be recovered where they are paid to an individual with income above £35,000. There is no tapering of the clawback – just £1 of income above £35,000 will make the difference between retaining or losing the payment.
“The DWP has developed a calculator so that pensioners can check whether, and how, their Winter Payment will be clawed back.
“It is our understanding that income for this purpose will be based on total taxable income, rather than adjusted net income, so there will be no deduction for Gift Aid or similar payments.
“Where the pensioner files a Self-Assessment tax return online, HMRC will prepopulate the Winter Payment details automatically if their income is above £35,000. This will need to be manually entered if a paper tax return is submitted.
“Pensioners with income above £35,000 who do not file tax returns will have their PAYE coding notice adjusted for the 2026/27 tax year to clawback Winter Payments received during the previous tax year.
“From April 2027, it is expected that HMRC will recover any Winter Payments in the same tax year they are paid.”