HMRC is sending new tax codes out to state pensioners to take their winter fuel payment back if they go over the £35,000 threshold
HMRC is sending new tax codes to state pensioners (Image: Getty)
HMRC will send new tax codes out to state pensioners in order to take their winter fuel payment back if they broke the earnings threshold this winter. Following changes made to the previous, unpopular winter fuel payment system which was tied to Pension Credit, winter fuel payments have since been made with the new £35,000 earnings threshold in place, which means most (but not all) state pensioners get to keep their £200 to £300 payments.
The new system for the payments of up to £300 means that everyone receives a payment, but an estimated two million state pensioners who earned more than the £35,000 threshold will be made to pay it back to HMRC. State pensioners aged under 80 receive £200, and those aged 80 or over receive £300 by default. In HM Revenue and Customs’ guidance published via Gov.uk, state pensioners have been told how it will work in practice for those who need to surrender the payment.
State pensioners who earned more than £35,000 from any income sources, whether it’s work or savings income, will have to wait for HMRC to take back the money via a change in their tax code, unless they normally submit a self-assessment tax return, or are asked to by the taxman.
This means HMRC will adjust pensioners’ tax code and send them a letter to tell them what their new tax code is, and recover the payment from their income each month.
Their guide says: “You’ll need to wait for us to take back the payment, you cannot pay it sooner.
“We’ll take your payment for the 2025 to 2026 tax year by changing your PAYE tax code for the 2026 to 2027 tax year. This means you’ll pay more tax each month to pay back the full payment that you received in the 2025 to 2026 tax year.
“For example, for a typical payment of £200, you’ll pay approximately £17 per month extra in tax.
“You’ll get a letter or a notification in the HMRC app to tell you that we’ve changed your PAYE tax code.
“We’ll review all of the tax you paid against the tax you were due to pay. If we have been unable to collect the full amount due during the tax year, in your tax code, we’ll send you a tax calculation.”
An HMRC spokesperson said: “The majority of people who need to pay back a Winter Fuel Payment will do so automatically via their tax code. For those already registered for Self Assessment, it will be collected via their tax return.
“We’ve provided online guidance clearly explaining how recovery of payments works, and a calculator so people can see if they’ll need to pay back the payment.”
State pension age latest as petition to get payments from 60 reaches major milestone
A petition has reached an important milestone as its deadline arrives today.
Your state pension age is the earliest age you can start receiving your State Pension (Image: Getty)
A petition calling for the state pension to be paid to everyone from the age of 60 has reached a significant milestone. The petition is calling for a fundamental change to the current pension system, arguing that people should receive the state pension from their 60th birthday. It opened on February 10, 2026, and closes today, Monday, August 10. The petition, created by Denver Johnson, also calls for the payment to be linked to the National Living Wage.
Under the proposal, the state pension would be equivalent to 48 hours of work at the National Living Wage. The campaign calculates this at £610.08 a week, or around £31,724 a year. The petition says the payment should be available to all people aged 60, including those living overseas. The petition has now attracted 6,171 signatures at the time of writing.
The UK State Pension age is gradually increasing from 66 to 67 between April 2026 and April 2028 (Image: Getty)
The official Parliament petition page states that 10,000 signatures are required before the Government is obliged to respond. A petition reaching 100,000 signatures can be considered for debate in Parliament.
The petition states: “We want the Government to make the state pension available from age 60 and increase it to equal 48 hours a week at the National Living Wage. Hence from April 2026 a Universal State Pension should be £610.08 per week or about £31,724.16 per year as a right to all including expatriates, age 60 and above.
“We think that Government policy seems intent on the State Pension being a benefit not paid to all, while ever increasing the age of entitlement.
“We want reforms to the State Pension, so that it is available to all including expatriates, from age 60, and linked to the National Living Wage, for security.”
The Department for Work and Pensions (DWP) has confirmed the state pension age is rising for people born in two years. The state pension age has now started to rise from 66 in April 2026 and will reach 67 in April 2028.
The age at which people can claim their State Pension, however, depends on their date of birth.
The increase affects people born on April 6, 1960, onwards. For those born between April 6, 1960 and March 5, 1961, the State Pension age rises in monthly steps. This means some people will reach State Pension age at 66 years and one month, while some other individuals will have to wait until they are 66 years and 11 months. People born from March 6, 1961, onwards are currently due to reach State Pension age at 67.
The Government said about the increase in State Pension age: “The Pensions Act 2014 brought the increase in the State Pension age from 66 to 67 forward by eight years. The State Pension age for men and women will now increase to 67 between 2026 and 2028.
“The Government also changed the way in which the increase in State Pension age is phased so that rather than reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years and the specified number of months.”
The State Pension age timetable according to the Pensions Act 2014
- April 6, 1960 – May 5, 1960 – 66 years and 1 month
- May 6, 1960 – June 5, 1960 – 66 years and 2 months
- June 6, 1960 – July 5, 1960 – 66 years and 3 months
- July 6, 1960 – August 5, 1960 – 66 years and 4 months
- August 6, 1960 – September 5, 1960 – 66 years and 5 months
- September 6, 1960 – October 5, 1960 – 66 years and 6 months
- October 6, 1960 – November 5, 1960 – 66 years and 7 months
- November 6, 1960 – December 5, 1960 – 66 years and 8 months
- December 6, 1960 – January 5, 1961 – 66 years and 9 months
- January 6, 1961 – February 5, 1961 – 66 years and 10 months
- February 6, 1961 – March 5, 1961 – 66 years and 11 months
- March 6, 1961 – April 5, 1977