MILLIONS of pensioners will be hit with £300 tax bills from HMRC this winter.
From November, around nine million pensioners will begin to see up to £300 land in their bank accounts.
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The cash boost comes as part of the Winter Fuel Payment, which is a benefit issued by the DWP to help elderly people with fuel costs over the colder months.
It comes after a previous £300 payment was axed for millions of pensioners last winter and only those on certain benefits qualified.
The move triggered a massive backlash for Labour as some 10million pensioners lost their winter fuel allowance in the benefit cut.
It saved the Treasury just £1.4billion but caused a massive public outcry.
The government later cracked under pressure and was forced to perform a half baked U-turn.
Most pensioners are now eligible for the support, which is worth between £100 and £300.
However, if your income is more than £35,000, HMRC will take the money back.
Your income can come from a range of factors including your private pension and state benefits.
If you fall into this earnings category, you can opt out of payments.
But the deadline to do so ended on September 15.
What happens now?
If you did not opt out, HMRC will change your tax code and you will receive a tax code notice letter.
Changing your tax code means that your Winter Fuel Payment will be deducted from your income and paid to HMRC in monthly instalments.
So for example, if you received a £100 Winter Fuel Payment but had an income of £35,000, you will pay back around £9 every month.
You will be charged from April 2026, which is the start of the new tax year.
Households can check if they are over the income thresholds by visiting www.tax.service.gov.uk/guidance/check-if-hmrc-will-take-back-your-winter-payment/start/country.
How to opt out of future charges
The deadline for opting out of the Winter Fuel Payment for 2025 to 2026 has passed.
But you can opt out of getting the benefit for 2026 to 2027 from April 2026.
When it reopens, you will need to complete either an online form or phone the helpline on 0800 731 0160.
If you opt to complete the form online, you will need details such as your National Insurance number.
Who is not eligible for the payment?
You can get a Winter Fuel Payment if you were born before September 22 1959 and live in England or Wales.
But a small group of individuals will not be eligible, including:
- live outside England and Wales
- were in hospital getting free treatment for the whole of the week of 15 to 21 September 2025 and the year before that
- need permission to enter the UK and your granted leave says that you cannot claim public funds
- were in prison for the whole of the week of 15 to 21 September 2025
Most people are paid the benefit automatically but if you think you are risk of missing out you can apply.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.