Winter Fuel Payment Charge

16th July 2026

Overview

From 6 April 2025, pensioners with total income exceeding £35,000, and who are not in receipt of a qualifying benefit, will be required to repay their Winter Fuel Payment (or Pension Age Winter Heating Payment in Scotland). HMRC have outlined steps to be taken for individuals affected by this.

Where a Charge is Due

The first tax year subject to these new measures is 2025/26. Each individual’s income is reviewed independently. If it crosses the £35,000 threshold, the Winter Fuel Payment will be due back to HMRC in full.

E.g.: If multiple people in a household are receiving the Winter Fuel Payment, the first person’s total income is £36,000 and the second’s is £34,000, HMRC will only recover the payment from the first person.

PAYE Customers

For individuals in receipt of income under PAYE, HMRC will automatically recover the amount due via tax codes (unless they are in self-assessment). For the 2025/26 tax year, it will be recovered through their 2026/27 tax code. If they receive PAYE coding notices, it will be shown as an “underpayment” before arriving at the code to be applied. These individuals cannot repay the amount early. They will need to wait for it to be collected through their PAYE income.

If HMRC have been unable to collect the total due by the end of the following tax year, they will issue a simple assessment detailing the balance due and how to pay this.

Self-Assessment Customers

Individuals filing by paper will need to include amounts received under the relevant section before submitting their tax return ahead of the deadline. For the 2025/26 tax year this is 31 October 2026. For online filers, HMRC have confirmed that where possible they will automatically include the 2025 payment as a tax charge on their self-assessment return. This is due for filing by 31 January 2027. Taxpayers will then settle the payment as part of their 2025/26 self-assessment tax bill, by 31 January 2027. The same principles will apply for future tax years. Unless they opt out of receiving the payment.

Opting Out of the Winter Fuel Payment

Anyone who expects their total annual income to exceed £35,000 can opt of receiving the payment. For 2026, the deadline to call HMRC and opt out is 18 September 2026. Alternatively, the deadline to complete HMRC’s opt out form is 20 September 2026. Following this, they will not receive future payments until they opt back in.