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Winter Fuel Payment 2025: UK pensioners face tax on winter fuel allowance - new HMRC rule changes explained
UK pensioners earning over £35,000 must repay Winter Fuel Payments averaging £300 through tax starting 2025 to better target support, affecting around 2 million people, HMRC said.
- This year the Government introduced an income cap requiring anyone earning over £35,000 to repay some or all of the Winter Fuel Payment, with HM Revenue & Customs handling repayments.
- Pensioners who expect higher income can opt out of Winter Fuel Payment 2026/27, with manual claims available by post or phone; applications must be submitted by March 31, 2026, via 0800 731 0160.
- Estimates show around 2 million pensioners will be affected, with the average reclaim around £300 and PAYE recipients spread over the year.
- Millions of pensioners will receive letters this month clarifying that money will not be taken directly from bank accounts, despite worries about £300 being deducted.
- HMRC says the repayment system for winter 2025/26 becomes more complex when it collects two payments in the same tax year, with some pensioners earning £23,027 possibly pushed over the threshold.
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The IndependentReposted by 
The Independent (US)
The Independent (US)Two million pensioners could have to repay £300 to HMRC - here’s how they’ll repay it
HMRC is set to reclaim the money owed through tax, rather than direct from bank accounts
·London, United Kingdom
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Coverage Details
Total News Sources21
Leaning Left3Leaning Right0Center10Last UpdatedBias Distribution77% Center
Bias Distribution
- 77% of the sources are Center
77% Center
L 23%
C 77%
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