HMRC is set to send notifications to millions of retirees who will be required to reimburse their Winter Fuel Payment. The Winter Fuel Payment, a benefit of up to £300 provided by the Department for Work and Pensions (DWP) to individuals over state pension age, will need to be repaid if the recipient earns over £35,000 annually. Repayments for most individuals will be adjusted in their tax code for the 2026/27 fiscal year.

Repayments will be staggered throughout the 2026/27 tax year and collected via the PAYE system. Those who submit self-assessment tax returns will see the adjustment reflected in their 2025/26 tax return. Approximately two million state pensioners must return their Winter Fuel Payment by winter 2025/26, with HMRC commencing notifications in April.

If your tax code changes and you have opted out of paper correspondence from HMRC, you will receive a digital notification outlining the adjustment. HMRC assures that most repayments will be automated through the tax code or collected via tax returns for those registered for Self Assessment. Online guidance and a repayment calculator are available to aid individuals in understanding the repayment process.

Winter Fuel Payments are disbursed to individuals born before September 22, 1959, who claimed specific benefits during the qualifying week of September 15 to 21, 2025. Those who did not claim these benefits must apply for the Winter Fuel Payment if eligible. Individuals who believe they are entitled to the payment but have not received it can make a claim to the Winter Fuel Payment Centre by March 31, 2026.

To inquire further or make a claim, individuals can contact the Winter Fuel Payment Centre at 0800 731 0160 or 18001 followed by 0800 731 0160 for Relay UK. Alternatively, written correspondence can be sent to the Winter Fuel Payment Centre in Wolverhampton. Certain conditions, such as hospitalization or residency in a care home, may render individuals ineligible for the Winter Fuel Payment.

In Scotland, the Winter Fuel Payment has been replaced with the Pension Age Winter Heating Payment, valued between £101.70 and £305.10.