The DWP has announced new rules around payments
Some pension payments will be cut.(Image: Getty Images)
The DWP is cutting some state pension payments by £17 a month under new rules.
Money will be taken from pension payments and diverted to HMRC instead.
It’s related to new rules around the Winter Fuel Payment scheme.
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HMRC will be taking back the winter allowance from over-65s who are no longer eligible.
All seniors were initially paid the cash despite not everyone qualifying under latest rules.
Pensioners with incomes above £35,000 no longer get to keep the allowance.
They are judged to be financially comfortable enough to cope without them.
HMRC will be clawing it back the cash in instalments through changes to tax code, with money taken off state pension payments each month.
For under-80s who get £200 Winter Fuel Payments, the tax authority will be taking back £17 a month.
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The process will be automatic through tax codes, unless people already file self-assessments.
It’s part of latest Winter Fuel Payment rules confirmed by the Government, with the support no longer universal.
It 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.”