Article: published on 5 March 2026
Consumer expert Rebecca Wilcox
Winter Fuel Payments: Why some households must repay up to £300
At a glance
HMRC is contacting households whose income exceeded £35,000 after receiving the Winter Fuel Payment
Payments worth £100 to £300 must be repaid if your total income is above the eligibility threshold
Most repayments will be collected automatically through changes to tax codes in the 2026 to 2027 tax year
Households expecting to exceed the income limit can opt out of future Winter Fuel Payments from 1 April 2026
- Published
Millions of households are being contacted by HMRC and told they may need to repay their Winter Fuel Payment.
The government support payment is designed to help older households with heating costs during the colder months. Payments were issued in November and December last year.
Consumer expert Rebecca Wilcox joined BBC Morning Live to explain why some people are being asked to pay the money back, how repayments will be taken, and what to watch out for from scammers.
Why are some people being asked to repay the Winter Fuel Payment?
Winter Fuel Payments, known in Scotland as Pension Age Winter Heating Payments, are annual cash grants intended to help with winter energy bills.
For the latest payment, eligibility applies to people born before 22 September 1959 in England, Wales or Northern Ireland, and before 21 September 1959 in Scotland.
The payment itself ranges from £100 to £300 depending on age and household circumstances.
However, eligibility is also based on income. Anyone whose total personal income exceeds £35,000 during the relevant tax year must repay the payment in full.
HMRC cannot confirm final income until the tax year ends. Because payments need to be issued before winter, the system works by paying everyone of qualifying age first and then contacting those who turn out to be above the income threshold later.
How will the repayment be taken?
In most cases, the money will be recovered automatically through the tax system.
HMRC will adjust the person's tax code in the 2026 to 2027 tax year. The repayment appears as an underpayment, meaning slightly higher tax deductions will be taken each month.
There is no interest charged on the amount being repaid.
For example, someone who received £200 could see their monthly income reduced by around £17 while the repayment is collected.
People who complete a Self Assessment tax return will instead see the repayment added to their tax bill for the 2025 to 2026 tax year.
Anyone who believes the calculation is incorrect can challenge the decision with HMRC.
Rebecca warned that scammers are targeting people who may be asked to repay their Winter Fuel Payment
Scam warning
Rebecca issued a warning that the repayment process could create an opportunity for scammers:
"Fraudsters often send messages pretending to be from government departments asking for personal details or payment.
HMRC has confirmed the official letters about Winter Fuel Payment repayments will make clear that no action is required and will not ask for personal or financial information.
If you receive any message asking you to provide details or make a payment in relation to the Winter Fuel Payment, dispose of it."
Can you opt out of future payments?
People who know their income will remain above £35,000 can choose to opt out of receiving the Winter Fuel Payment in future.
From 1 April 2026, households can opt out of the 2026 to 2027 payment by contacting the Winter Fuel Payment Centre or completing a form online. You will need your National Insurance number to do this.
Once you opt out, you will not receive future payments unless you choose to opt back in.
The main reason to opt out if you expect your income to stay above the threshold is because from the 2027 to 2028 tax year, HMRC plans to recover payments in advance rather than in arrears, meaning deductions could be roughly double.
For a typical £200 payment, this could mean around £33 a month being taken through the tax system instead of about £17. The deductions are expected to return to the lower monthly amount in the following tax year.
