It’s part of new rules which have been announced by the Government
14:22, 24 Feb 2026Updated 14:22, 24 Feb 2026
Cash will be taken back from certain pensioners.(Image: Ian Vogler / Daily Mirror)
Certain pensioners will see £17 a month taken from their regular payments under new rules.
HMRC will be clawing back the cash from those with incomes over £35,000.
These people were paid Winter Fuel Payments, worth up to £300, before Christmas but did not qualify for the support scheme.
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That money will be taken back in monthly instalments by the tax authority, seen as the easiest way of separating those who are and aren’t eligible.
This is why some retirees may notice less in their bank accounts than expected.
New Winter Fuel Payment rules were announced by Rachel Reeves and the Government last year.
The support was previously universal for all pensioners but now only goes to those with annual incomes below £35,000.
Overall, state pension payments are going up by either £575 or £440 a year, depending on which version retirees receive.
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The Government explained: “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.”