Millions of pensioners across the United Kingdom have received a vital clarification from HM Revenue and Customs (HMRC) regarding the tax treatment of their Winter Fuel Payment for the 2025/26 period.
Key Details of the HMRC Announcement
The tax authority has confirmed that pensioners whose income exceeds £35,000 will be required to repay the Winter Fuel Payment they received in Autumn 2025. This repayment will be collected through the tax system, but not immediately.
Specifically, HMRC stated that recipients do not need to declare the payment on their tax return for the 2024 to 2025 tax year. Instead, the sum will be recovered in the 2025 to 2026 tax return, which must be submitted by 31 January 2027.
The recovery will happen automatically, either through the Self Assessment process or via an adjustment to the individual's PAYE tax code.
Eligibility and Payment Distribution
The Department for Work and Pensions (DWP) has been distributing the one-off payment, which ranges from £100 to £300, to around 9 million eligible households. The majority should have received their money during November or December 2025.
To qualify for the payment, individuals must have been born before 22 September 1959 and have an annual income of £35,000 or less. The exact amount received depends on several factors:
- The recipient's age.
- Their living situation (e.g., living alone or with others).
- UK residency during the qualifying week of 15-21 September 2025.
For example, pensioners living in care homes may receive £101.70, those aged 66-79 could get £203.40, and individuals aged 80 or above may be entitled to £305.10.
What Pensioners Need to Do Next
For those uncertain about whether they will need to repay the benefit, HMRC has an online verification tool available on GOV.UK. This can help determine liability before the January 2027 deadline.
Meanwhile, the DWP has confirmed that payments are still being issued. Any pensioner who believes they are eligible but has not yet received a payment must act promptly. The deadline to submit a claim is the end of March 2026.
This update provides much-needed clarity for higher-income pensioners, ensuring they understand their tax obligations and can plan accordingly for the 2027 filing deadline.
