Are you a state pensioner who received a winter fuel payment this year? If so, you may have received a letter from HMRC with a new tax code. But here's where it gets controversial... This new tax code is being sent to state pensioners who earned more than £35,000 in the 2025-2026 tax year, and it means they will have to pay back the winter fuel payment they received. And this is the part most people miss... The winter fuel payment system has changed, and now state pensioners who earn more than £35,000 will have to pay back the payment they received. But don't worry, HMRC has provided guidance on how this will work in practice. So, if you're a state pensioner who earned more than £35,000, read on to find out more about what this means for you. But first, let's break down the basics. State pensioners aged under 80 receive £200, and those aged 80 or over receive £300 by default. However, if you earned more than £35,000, you will have to pay back the payment you received. How will HMRC take back the money? HMRC will adjust your tax code and send you a letter to tell you what your new tax code is. They will then recover the payment from your income each month. This means you'll pay more tax each month to pay back the full payment you received in the 2025-2026 tax year. For example, for a typical payment of £200, you'll pay approximately £17 per month extra in tax. But why is this happening? The winter fuel payment system has changed to ensure that everyone receives a payment, but those who earn more than £35,000 will have to pay it back. This is the first time the winter fuel payments have been made with the new £35,000 threshold in place, and it's important to understand how it will work. So, if you're a state pensioner who earned more than £35,000, make sure you read the guidance provided by HMRC. And if you have any questions or concerns, don't hesitate to contact HMRC for more information. But remember, this is a controversial change, and it's important to understand how it will affect you. So, what do you think? Do you agree with this change to the winter fuel payment system? Or do you think it's unfair? Let us know in the comments below!
