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HM Revenue and Customs (HMRC) has issued an update for state pensioners earning over £35,000 annually. Around two million households across the UK will be impacted throughout the current financial year.

It has been confirmed that state pensioners earning over £35,000 will face additional monthly deductions to recover Winter Fuel Payments issued during the 2025/26 financial year. It comes as HMRC continues to claw back money lost after households that exceeded the earnings limit were sent payments worth between £100 and £300 last year. The recovery programme, which started in April, will see affected pensioners pay around £17 extra every month.

HMRC said: "For a typical Winter Fuel Payment of £200, PAYE customers with income more than £35,000 will pay approximately £17 per month extra in tax during the 2026 to 2027 tax year to recover their payment."

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Households have been contacted by HMRC and told they may need to repay their Winter Fuel Payment as their income exceeds £35,000 during the relevant tax year. HMRC will adjust the person's code in the 2026/27 year, with repayments appearing as an underpayment, meaning higher tax deductions will be taken each month.

For example, some one who received £200 could see their income reduced by £17 while the amount is repaid in full. Meanwhile, anyone who believes the calculation is incorrect or wants to opt out of receiving the benefit as they know their income will remain above £35,000 should contact HMRC.

Meanwhile, HMRC also warned that fraudsters may attempt to exploit the clawback scheme by impersonating officials through text messages, emails or phone calls. The department said it would never contact pensioners requesting banking details or direct repayment.

Myrtle Lloyd, HMRC's chief customer officer, said: "Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

"I'd encourage anyone who's unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered - there's no need to call us."