Winter fuel payment eligibility: HMRC sending letters telling pensioners to pay it back

The UK Government is sending pensioners a winter fuel payment - and then asking for it back, if the recipient earns more than £35,000 a year.

Pensioners whose wage exceeded £35k in 2025-2026 are receiving letters from HMRC with new tax codes, which require them to pay back the winter fuel payments they received, in a controversial change to the system.

Details of the letters reclaiming the payment come after the UK administration faced backlash after introducing restrictions on who would receive the payment, which had previously been unconditional for OAPs in a bid to lessen their energy costs.

HMRC is making the claim through new tax codes for pensioners, with letters to notify them of their new codes - which also includes details of how they should repay their winter fuel payment, which could be around £200 for those under 80 and £300 for those 80 and over, through a monthly payment in their taxes during the 2026-2027 tax year.

Instead of a change in tax code, self-employed pensioners will need to add the amount to their Self Assessment tax return.

The Government has consistently said it aims to address an unfairness which meant all pensioners, regardless of income, received the payout, with affected pensioners urged to review the information and contact the tax authority with any questions or concerns.

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