The DWP has confirmed that certain pensioners will see their payments cut by £17 a month from April – here’s everything you need to know about the changes
12:19, 26 Jan 2026Updated 14:46, 26 Jan 2026
Some pensioners will lose £17 a month under new DWP rule changes(Image: Getty)
Certain pensioners will see their payments reduced by £17 a month under DWP rule changes.
Some households will therefore notice alterations to how much they receive each month.
The DWP has explained how the new rules will operate and who will be affected.
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Pensioners who received Winter Fuel Payments before Christmas, but whose incomes were too high to qualify, will have to repay the money, reports Birmingham Live.
These were people with incomes above £35,000.
HMRC will be recovering it in instalments through changes to tax codes, with a small portion of pension payments being redirected to the taxman.
For under-80s who receive £200 Winter Fuel Payments, HMRC will be deducting £17 a month.
This will happen automatically through tax codes, unless people already file self-assessments.
New rules have been set out by Chancellor Rachel Reeves and the DWP.
Winter Fuel Payments were previously universal for all pensioners but are now means-tested based on income.
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.”
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