Some pensioners will notice changes to their usual payments
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Certain state pensioners will have cash deducted from payments this year under new rules.
Those affected should be aware of the new arrangements so they aren’t caught by surprise when payments are lower than expected.
It relates to those who received Winter Fuel Payments before Christmas but did not qualify for the support.
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These were people with incomes above £35,000.
Winter Fuel Payments were worth either £200 or £300 depending on age and money was initially paid out to everyone.
HMRC has now set out details of how the money will be clawed back from these households.
For under-80s who get £200 payments, HMRC will be deducting £17 a month.
This will happen automatically though tax codes, unless people already file self-assessments.
New Winter Payment rules have been introduced for 2025/26.
The payment was previously universal for all pensioners but it’s now based on income.
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The Government said: “If your total income is over £35,000, you’ll need to pay back the payment.
“HMRC will automatically collect the payment through your tax code unless you already file self-assessment tax returns.
“This means we’ll change your tax code for the 2026 to 2027 tax year. For a typical payment of £200, we’ll deduct approximately £17 per month.
“In the 2027 to 2028 tax year, we’ll deduct approximately £33 per month for a typical payment of £200.
“This is because we’ll be collecting your payments from 2026 and 2027. It will then return to approximately £17 per month for the 2028 to 2029 tax year.
“If you file your self-assessment tax return online each year, HMRC will automatically include the payment on your 2025 to 2026 tax return as part of your income.”