HMRC has sent information on how winter fuel payments (or pension age winter heating payments in Scotland) will be recovered for taxpayers from 2025/26 onwards.
Recovery of 2025 winter fuel payments
If a taxpayer’s total individual income for 2025/26 is more than £35,000, HMRC recover their 2025 winter fuel payment. If the taxpayer lives in a household with someone else who has also received a payment, HMRC will examine each person’s individual income separately. For example, if person A has total income of £36,000 and person B’s is £22,000, HMRC will claw back the payment from person A, but person B will keep their payment.
HMRC has also provided a calculator to help taxpayers work out if their total income is over £35,000. The calculator also explains how the payment will be recovered if it is.
Recovery for PAYE taxpayers
HMRC will automatically collect the payment through a change to the taxpayer’s tax code from April 2026 unless they already file a SA tax return. As a result HMRC will change the taxpayer’s tax code to deduct approximately £17 per month. These taxpayers do not need to do anything or call HMRC.
In February 2026 taxpayers may receive a notification of their tax code for 2026/2027 which will not yet include the adjustment for their winter payment. They do not need to take any action or call HMRC and should receive an updated tax code, which reflects recovery of their winter fuel payment, in early April 2026.
Recovery for SA taxpayers
HMRC will collect their payment through their 2025/26 SA return. For online filers, where possible HMRC will prepopulate their online SA return which is due by 31 January 2027 with the 2025 payment. Taxpayers should check that their winter fuel payment has been included and if it has not been included they must add it themselves. Anyone filing on paper by 31 October 2026 will need to include it themselves.
Opting out of future payments
Anyone who expects their total individual income from their private pension, state pension, and any other sources to be over £35,000 can opt out of future payments. Taxpayers in England, Wales and Northern Ireland will be able to opt out of receiving future winter payments via an online form on GOV.UK which will be available from April 2026. Anyone in Scotland should contact Social Security Scotland by phone if they want to opt out for future years.
In-year collection from 2027/28
HMRC will begin collecting the payment in the tax year starting from 2027/28. This means that the 2026 winter fuel payment will not be collected until 2027/28. As a result in 2027/28, two amounts of winter fuel payment will be collected (the payments for 2026 and 2027) therefore PAYE taxpayers who receive winter fuel payments will see approximately £33 per month deducted, up from £17 a month.
From 2028/2029, the PAYE system will collect the winter fuel payment for winter 2028 during the tax year it is paid in, which means this will return to a monthly deduction of approximately £17.
HMRC has included this information in guidance and will also incorporate this in communications activity ahead of 2027/28.
Information and guidance
An explainer video outlining how payments will be recovered is available on HMRC’s YouTube channel. Further information on HMRC’s recovery approach can also be found on GOV.UK. General information is also available at the following links:
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