Millions of older people will start having Winter Fuel Payments reclaimed this month, with some facing losses of up to £300.

HM Revenue and Customs has announced that anyone earning more than £35,000 will see their winter 2025 payment clawed back, impacting almost two million individuals throughout Britain.

For many, the funds will be recovered automatically via the tax system, meaning pensioners may notice their monthly income decreasing without doing anything themselves.

Those registered with PAYE will repay the sum through tax code adjustments from April 2026, while others will account for it in their Self Assessment filings.

A standard £200 payment will be recovered in stages, working out at roughly £17 monthly, though those who received up to £300 could experience a more pronounced reduction in annual income.

Even after the controversy surrounding the link between Winter Fuel Payment and Pension Credit, government data indicates that 900,000 of the most financially vulnerable older people out of 2.3 million who qualify are still not claiming the essential Pension Credit income supplement.

HMRC has emphasised that the majority of recipients do not need to take any steps to initiate repayment.

Myrtle Lloyd, HMRC’s chief customer officer, warned that criminals frequently impersonate the tax authority using fake letters, emails, calls and texts to deceive people into handing over money. She advised anyone with concerns to use the online tool on GOV.UK to verify their repayment details, stating there is no need to contact HMRC directly. She added that the procedure is uncomplicated for most, with repayments processed automatically through the system.

The arrangements apply across the entire country, including in Scotland where the support is called the Pension Age Winter Heating Payment, and in Northern Ireland, with all recovery managed by HMRC.