Dan says:
“This story, widely reported, relates to upcoming changes to the Winter Fuel Payment (known as the Pension Age Winter Heating Payment in Scotland).
From November, the payment will continue to go automatically to people aged 66 and over to help with heating costs. What’s changed is the introduction of a new income cap. Those earning more than £35,000 a year will no longer qualify.
Rather than withholding payments upfront, the government will pay everyone first and then recover the money from those over the threshold through the tax system. Around 2 million people are expected to be affected, and the average amount to be repaid will be up to £300.
That money will not be taken from bank accounts. Instead, HMRC will reclaim it through tax.”
Method of reclaim
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Pay As You Earn (PAYE) – where the amount is deducted monthly from your salary or pension income.
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Self Assessment – for those who file tax returns, the amount will be added to the following year’s tax bill.
Dan continues:
“From 2027, the process will change again. HMRC plans to collect two payments in that year, one to recover overpaid support from 2026 and another in advance for the 2027 payment, meaning some people could see deductions of up to £600 across the year.
The government says this approach helps avoid delays in recouping overpayments and ensures the system stays up to date.”
A spokesperson for HMRC told BBC Morning Live:
For PAYE customers, for a typical payment of £200, we’ll deduct approximately £17 per month. In the 2027 to 2028 tax year, we’ll deduct approximately £33 per month for a typical payment of £200. This is because we’ll be collecting payments from 2026 and 2027. It will then return to approximately £17 per month for the 2028 to 2029 tax year.
If you are confident that you will breach the £35,000 income threshold then you have the option to opt out of receiving the 2026 Winter Fuel Payment. Details of how to opt out can be found at gov.uk or mygov.scot from April 1st 2026. You’ll also be able to do this by phone or by post.
