Heads up, pensioners! Changes are coming in 2026 that might see some of you losing a bit of your monthly payout. If you’ve received a Winter Fuel Payment but your income tops £35,000, you’ll need to repay that cash. How? It’ll be deducted from your pension through your tax code.
For under-80s receiving a £200 Winter Fuel Payment, expect £17 a month to be redirected to the taxman. These deductions will kick off in the 2026/27 tax year and increase to around £33 a month during 2027/28 before settling back to £17 monthly thereafter. It’s all part of a new rule by the Department for Work and Pensions to ensure the benefits are more targeted.
While Winter Fuel Payments used to be universal, they’re now income-based, aligning with other benefit systems. The aim is to make sure support goes where it’s most needed. If you do self-assessments online, this will be automatically factored into your tax returns.
Stay informed and budget accordingly as these changes approach. 💷✨