State pensioners earning over £35,000 could face monthly deductions of up to £33 to recover Winter Fuel Payments (WFP) unless they opt out before the 2026-27 tax year. This warning comes after HM Revenue and Customs (HMRC) announced changes to the repayment process that may result in higher monthly repayments for one year.
Winter Fuel Payments, also known in Scotland as Pension Age Winter Heating Payments, provide financial support—ranging from £200 to £300—to older individuals to help cover heating costs during the colder months. These payments are typically issued in November and December to all qualifying pensioners.
However, those whose income exceeds £35,000 must repay the full amount received. Until now, repayments were recovered through tax codes or Self Assessment returns in arrears, resulting in modest monthly deductions, usually around £17. Starting in the 2026-27 tax year, HMRC plans to recover payments in advance, which will temporarily double the monthly repayment to approximately £33.
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Consumer expert Rebecca Wilcox advises pensioners expecting incomes above the threshold to opt out of receiving the Winter Fuel Payment for the upcoming year. “Opting out from 1 April can prevent you from facing doubled repayments,” she explained on BBC Morning Live. “If your income falls below the threshold later, you can opt back in to receive the payment again.”
Eligibility for the payment depends on age and residency, with birthdate cutoffs set before 22 September 1959 (England, Wales, Northern Ireland) and 21 September 1959 (Scotland). Those earning even slightly over £35,000 must repay the benefit in full once their income is assessed post-tax year.
HMRC will reflect the repayment amount as an underpayment via tax code adjustments, ensuring there is no interest charged on the reclaimed sum. To avoid unexpected higher deductions, pensioners can decline the Winter Fuel Payment for the 2026-27 period by contacting the Winter Fuel Payment Centre or filling out an online form with their National Insurance number from 1 April 2026.
Be alert to scams related to Winter Fuel Payment repayments. HMRC has confirmed that official communications will never request personal or financial information. Any suspicious messages should be discarded immediately.