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Winter Fuel Payment Clawback Explained | Leeds News
Description
Two million state pensioners earning over £35,000 a year could face a £300 clawback on their Winter Fuel Payment — not a direct bank charge, but an adjustment via tax code. The change, originally planned by Rachel Reeves, now falls to John Healey to implement. Payments still go out automatically in November, but those above the income cap will see deductions starting in 2026, rising to up to £600 spread across 2027. PAYE recipients may see monthly deductions of £17 in 2026, jumping to £33 in 2027. If you’re over the threshold, you can opt out of the 2026 payment — details available from April 2026.
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