The UK tax authority has issued a warning to pensioners as millions prepare to repay their Winter Fuel Payments. The alert comes amid growing concern that fraudsters may exploit the process. At the same time, the repayment system itself marks a significant shift, affecting higher-income retirees through largely automatic mechanisms. The combination of policy change and scam activity has prompted officials to urge vigilance.
Automatic Repayments Begin as Income Threshold Triggers Recovery
Nearly two million pensioners are expected to repay their Winter Fuel Payment for winter 2025 after exceeding the £35,000 annual income threshold. According to HM Revenue and Customs (HMRC), the recovery process will begin in April 2026 and, for most people, will happen automatically through adjustments to PAYE tax codes.
This means affected individuals will not need to take any action. The repayment is instead spread across the 2026 to 2027 tax year. For a standard £200 payment, this equates to roughly £17 per month in additional tax, according to reports.
The exact amount depends on age. Those born between 22 September 1945 and 21 September 1959 are required to repay £200, while individuals born before 22 September 1945 must repay £300. HMRC is writing directly to those impacted to confirm changes to their tax codes.
For pensioners who complete Self Assessment, the process differs slightly. Online filers should see the payment automatically included in their 2025 to 2026 tax return, due by 31 January 2027. Paper filers must manually include the amount by 31 October 2026 if it is not already listed.
According to HMRC guidance, this system applies across the UK, including Scotland, where the benefit is known as the Pension Age Winter Heating Payment, and Northern Ireland, where it is administered on behalf of the devolved executive. In all cases, HMRC remains responsible for recovering the funds.
Surge in Scam Activity Prompts Urgent Warning to Vulnerable Groups
Alongside the rollout of repayments, authorities have raised concerns about a rise in scams targeting pensioners. HMRC reported receiving more than 25,000 scam referrals related to Winter Fuel Payments over the past year, highlighting the scale of the issue.
Officials fear that fraudsters will use the repayment process as an opportunity to impersonate HMRC. These scams often take the form of text messages, emails, or phone calls requesting payment or personal banking details.
Myrtle Lloyd, HMRC’s chief customer officer, warned that “criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money,” according to statements reported across several UK news platforms.
Crucially, HMRC has stressed that it will never contact individuals by text or email to request repayment or ask for bank details. Instead, people are encouraged to use the official GOV.UK online tool to check whether they need to repay and how the process will work.
The warning reflects broader concerns about fraud targeting older and potentially vulnerable individuals. According to HMRC, the current alert is a preventative measure aimed at reducing harm during a period when many pensioners may be uncertain about changes to their payments.
While the recovery process continues, officials are emphasising the importance of relying only on verified government channels for information and avoiding any unsolicited contact that requests financial details.
