Millions of pensioners warned to check their finances now or face a double Winter Fuel payment tax raid

MILLIONS of pensioners are being warned to check their finances now, or risk being hit with a double Winter Fuel Payment tax raid. The Winter Fuel Payment is worth between £100 and £300, and is paid to pensioners each year to help cover the cost of heating their homes. It was previously available to almost every pensioner in the country, but the government controversially restricted it in 2024 to only those on Pension Credit or other means-tested benefits. Following a huge backlash, ministers reversed course and restored the payment to all pensioners, but brought in a new income threshold instead. Sign up for the Money newsletter Thank you! It means those with income over £35,000 now have to pay it back, with Winter Fuel Payments recoverable by HMRC where a pensioner’s total income, from private or state pensions and other sources, exceeds this amount. Anyone on PAYE earning above this threshold is currently having their winter 2025 payment clawed back automatically. But a change to how this works means some pensioners could end up losing two payments in one go. From the 2027/28 tax year, HMRC will start clawing back the Winter Fuel Payment in the same year it’s paid out, rather than the year after. This means the money for winter 2027 will be collected in 2027/28, as normal. But the payment for winter 2026 will also be collected in that same 2027/28 tax year, because of how the system is changing. Most read in Money In other words, two years’ worth of payments will be clawed back in one go, unless pensioners act now. The Department for Work and Pensions is now warning that the only way to dodge this double hit is to opt out of receiving the payment altogether. Pensioners in England, Wales and Northern Ireland can opt out using the online forms on GOV.UK. They can also contact the Winter Fuel Payment Centre directly on 0800 731 0160. Anyone unsure whether they earn over the £35,000 threshold can use a free calculator on GOV.UK to check. Pensioners who opt out are not locked in forever, and can opt back in to receive payments again if their circumstances change in future. Comment now