Consumer expert Rebecca Wilcox has explained how those earning over £35,000 can avoid having to repay double through their tax code by opting out of the Winter Fuel Payment but only after a certain date
A BBC specialist has warned that millions may need to act on or after 1 April – or risk paying ‘double’ back to HMRC. Consumer expert Rebecca Wilcox told BBC Morning Live audiences that anyone with a taxable income exceeding £35,000 might want to opt out of the 2026 winter fuel payment – or face repaying around ‘£33 each month’ due to the changes.
She cautioned that from April, millions of households will receive correspondence from HMRC informing them they may be required to repay their Winter Fuel Payment. She explained that some individuals might prefer to take preventative action by declining the payment altogether to avoid the repayment procedure.
Ms Wilcox highlighted that a significant change later this year means people would be repaying double the standard amount. Regarding advance cancellation, she clarified: “If you know your personal income is going to be over the threshold of £35,000 then opt out of it for the next year and then you don’t have to worry about the next payment. You cannot do this until April 1. The reason you’ll want to opt out is because the payments are going to double just for one year.
“This is because the taxman is in debt, he’s in arrears, because he’s paid out all this money and it wants to claw this money back. For one year it is going to charge everybody double on their repayments so it can get back into the normal process of taking the money from you and then returning it. It wants to have its money so for one year it is going to charge you, say you were doing, for example we were talking about, of £17 per month tax deductions, it’s going to charge you double, £34 per month for that one year and then it will go back to £17.”
“So that’s why you might want to opt out if you know you’re going to be earning £35,000 and above. If your income then drops just be aware you will have to opt back in to receive the winter fuel payment.”
Speaking to BBC Morning Live audiences, Ms Wilcox clarified: “The Winter Fuel Payment was a lump sum that was paid out to help you with your fuel bills during the cold months of November and December. That’s when the payments were made. What happened was they paid everybody who was over the age threshold. You were eligible to keep it if you were born before 22 September 1959 – that’s for England, Wales and Northern Ireland. Or the 21 September 1959 in Scotland.
“If you’re born before that and you earn £35,000 exactly and under you can keep it. If you earn even a penny over the £35,000 of your personal, taxable income, then you will need to pay back this payment. The payment was between £100 and £300 and that number was calculated on your circumstances, your household circumstances and how old you are.
“For some this is going to be the first they’ve heard about repayment. And there’s a reason that this is happening and it’s because HMRC can do many things but it cannot predict the future. it has no idea how much you’re going to earn in that future tax year. So it’s just given it to everybody and then when it knows how much you’ve earned which is April, it will take back the money that it paid you back in November.
“If you earn over £35,000 and are within the age bracket you will be required to pay this back in full.” She explained HMRC has an online checker available for those uncertain whether they exceed that threshold.
Winter Fuel Payments, referred to in Scotland as Pension Age Winter Heating Payments, are annual financial grants designed to assist with winter energy costs. For the current payment, eligibility covers individuals born before 22 September 1959 in England, Wales or Northern Ireland, and before 21 September 1959 in Scotland.
The payment ranges from £100 to £300 based on age and household situation. HMRC cannot verify final earnings until the tax year concludes.
As payments must be distributed before winter arrives, the system operates by initially paying all eligible individuals, then contacting those who exceed the income threshold afterwards.
In the majority of instances, the funds will be recovered automatically via the tax system. HMRC will modify the individual’s tax code during the 2026 to 2027 tax year.
The repayment shows as an underpayment, resulting in marginally increased tax deductions each month.
No interest is levied on the sum being repaid. For instance, someone who obtained £200 might experience their monthly earnings reduced by approximately £17 whilst the repayment is collected.
Individuals who submit a Self Assessment tax return will instead have the repayment added to their tax bill for the 2025 to 2026 tax year. Anyone who considers the calculation incorrect can dispute the decision with HMRC.
From 1 April 2026, households may opt out of the 2026 to 2027 payment by contacting the Winter Fuel Payment Centre or filling in a form online. Your National Insurance number will be required to do this.
Once you opt out, you will not receive subsequent payments unless you decide to opt back in. The primary reason to opt out if you anticipate your income will remain above the threshold is that from the 2027 to 2028 tax year, HMRC intends to collect payments in advance rather than in arrears, meaning deductions could be roughly double.
For a typical £200 payment, this could result in approximately £33 monthly being deducted through the tax system instead of around £17. The deductions are expected to revert to the lower monthly figure in the subsequent tax year.
