UK state pensioners sent winter fuel payment warning over £35,000 rule | UK | News

These are annual cash grants ranging from £100 to £300, depending on age and household circumstances.

Eligibility for payment also depends on income. A person whose personal income exceeds £35,000 in the relevant tax year will have to repay the full amount.

According to HMRC figures, nearly one in five pensioners have an income of over £35,000, Business and Accounting Daily reports.

Nearly two million people are expected to repay their winter 2025 payments because their annual income is more than £35,000, the government said.

The tax office cannot confirm a person’s final income until the tax year ends, but Winter Fuel Payments must be made before the winter season.

Therefore, the system works by first paying everyone of the eligible age and then contacting those who turn out to be above the income threshold.

Generally, debts to the tax office are automatically repaid through the tax system.

The tax authority adjusts the individual’s tax code in the 2026 to 2027 tax year and the refund appears as an underpayment. This means that the individual will have a slightly higher tax deduction each month.

The government has urged pensioners to be wary of Winter Fuel Payment scams.

That’s what he said HMRC The last 12 months have seen more than 25,000 Winter Fuel Payment scam referrals. He warned that scammers could now use the recovery process as a hook to use texts, emails and phone calls to target this group.

HMRCMyrtle Lloyd, Chief Customer Officer, said: “Criminals are great impersonators and often use fake letters, emails, calls and messages to impersonate themselves. HMRC and they trick people into giving them money.”

HMRC Will does not contact people via text or email to ask for a refund of their Winter Fuel Payments or request their banking information.