The update from Labour Party ministers comes after a Department for Work and Pensions (DWP) Winter Fuel Allowance u-turn.
HMRC plans to ‘recover’ cash from millions of state pensioners
The Labour Party government has broken its silence over a plan for HMRC to “recover” cash from millions of state pensioners. The update from Labour Party ministers comes after a Department for Work and Pensions (DWP) Winter Fuel Allowance u-turn.
John McDonnell, Independent for Hayes and Harlington, reached out in the Commons “to ask the Chancellor of the Exchequer, with reference to her Department’s press release entitled Nine million pensioners to receive Winter Fuel Payments this winter, published on 9 June 2025.”
He asked “what assessment she has made of the resources HMRC will require to (a) undertake the recovery of payments and (b) respond to (i) queries and (ii) complaints relating to the recovery of winter fuel payments; and whether additional funding will be made available for this work.”
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James Murray, Labour Party MP for Ealing North, replied: “The Government announced in June 2025 that the Winter Fuel Payment will be made universal in England and Wales from winter 2025. Subsequently, the Scottish Government and Northern Ireland Executive have confirmed that they will mirror the approach for England and Wales.
“Winter Fuel Payments of £200 will be made for a household with someone of State Pension age and £300 for a household with someone aged 80 or over. They will be paid automatically to anyone who has not opted out of getting a payment.
“Individuals who are of State Pension age and have total income over £35,000 will have their Winter Fuel Payment recovered through the tax system. The amount recovered will be equal to the full value of the Winter Fuel Payment.
“If a pensioner’s total income is above the income threshold, it will be automatically recovered through PAYE, or through their Self-Assessment return if they pay tax that way.
“The Government will publish further details of the operational impacts on HM Revenue and Customs of making these changes in a Tax Information and Impact Note at Budget 2025, alongside draft Finance Bill legislation on the tax recovery of the Winter Fuel Payment.”