Pensioners across the UK are being urged to check whether a winter support payment worth up to £300 could later be reclaimed from them through the tax system. The Department for Work and Pensions has highlighted a new online tool that allows people to see if they are affected by recent rule changes linked to income levels.
The reminder was included in a recent DWP Touchbase newsletter and follows changes introduced last winter to the Winter Fuel Payment and the Pension Age Winter Heating Payment.
Changes
Under the revised system, eligible pensioners will usually receive the Winter Fuel Payment or Pension Age Winter Heating Payment automatically. There is no longer a requirement to apply in most cases.
However, HM Revenue and Customs will recover the payment from individuals whose total taxable income exceeds £35,000 a year. Repayment will not be requested upfront but will instead be collected through the tax system.
According to official guidance, recovery will happen either through an adjustment to a person’s tax code during the 2026 tax year or through a Self Assessment tax return, depending on how they normally pay tax.
Income
The £35,000 threshold applies to a person’s individual income, not household income. HMRC says total taxable income includes:
- State Pension
- Workplace and private pensions
- Earnings from employment
- Savings interest
- Dividends
- Rental income
- Taxable state benefits
To help pensioners understand their position, HMRC has launched an online calculator. The tool allows users to estimate their income and check whether their winter payment is likely to be reclaimed.
Couples
Because the assessment is made on an individual basis, couples may be treated differently. One partner may be required to repay the payment while the other keeps it.
HMRC gives the example of a couple where one pensioner earns £36,000 and the other earns £22,000. In this case, the higher earner would have the payment recovered through tax, while the lower earner would not.
Opt-out
Pensioners in England, Scotland, Wales and Northern Ireland who expect their income to exceed £35,000 can choose to opt out of receiving future payments altogether. The government says this may help some people avoid the need for repayments later on.
An online opt-out form for the Winter Fuel Payment is available on GOV.UK. For those who cannot use the internet, a telephone option is also available.
In Scotland, pensioners can opt out by contacting Social Security Scotland on 0800 182 2222 between 8am and 5pm, Monday to Friday. Further details are available on the MYGOV.SCOT website.
Repayment
HMRC has confirmed that pensioners cannot repay the benefit early as a single lump sum. Instead, recovery is usually spread out through PAYE tax code adjustments.
Guidance suggests that reclaiming a standard £200 Winter Fuel Payment could increase a person’s tax bill by around £17 per month during the recovery period. HMRC says pensioners affected by tax code changes should have been notified by letter or email from April.
For those who complete Self Assessment tax returns, the amount owed will be added to their annual tax bill rather than collected through PAYE.
Support
The Winter Fuel Payment and Pension Age Winter Heating Payment are designed to help older people manage heating costs during colder months. While payments are still issued automatically in most cases, the new rules mean some higher-income pensioners may ultimately have the money recovered.
Full guidance on eligibility, opting out, and using the income calculator can be found on the GOV.UK website.
FAQs
Who may have Winter Fuel Payments reclaimed?
Pensioners with income over £35,000 a year.
How will the payment be recovered?
Through tax code changes or Self Assessment.
Is the £35,000 limit per household?
No, it applies to each individual.
Can pensioners opt out of the payment?
Yes, an opt-out option is available.
