21/05/2026
From 2025, the Winter Fuel Payment will be subject to recovery based on individual income, not household income. HMRC has confirmed the following:
• If your total individual income in the 2025–26 tax year is £35,000 or less, you will keep your Winter Fuel Payment.
• If your total income is above £35,000, HMRC will recover the value of the payment.
e.g. If two people in the same household both receive a Winter Fuel Payment:
• Person A: Income £36,000 → HMRC will recover their payment
• Person B: Income £22,000 → They keep their payment
Each person is assessed entirely on their own income and HMRC has created an online calculator.
• whether they will exceed the £35,000 threshold
• how any repayment will be collected
How HMRC will recover the payment
For PAYE customers
If you pay tax through PAYE and do not file a Self - Assessment return:
• HMRC will recover your Winter Fuel Payment automatically by adjusting your tax code.
• The adjustment will apply from April 2026, affecting your 2026–27 tax code.
• For a typical payment of £200, the monthly deduction will be around £17 per month.
• You should not need to do anything and there should be no need to contact HMRC.
For Self Assessment customers
HMRC will recover the payment through your 2025–26 tax return.
• Online filers (deadline 31 January 2027) will see an entry labelled:
o “Winter Fuel Payment charge” or “Pension Age Winter Heating Payment charge”. If the charge is missing, you
27/11/2025