Millions are set to see their monthly pension payments cut.

Pensioners could be set to get a cut in what they receive. (Image: Getty)
Struggling pensioners could be hammered by Labour with a new cut to their allowance as Andy Burnham tries to claw back payments from the elderly who no longer qualify for a government benefit. As part of a Department of Work and Pensions (DWP) plan the taxman will come knocking for payments of up to £33 a month from April next year.
It’s part of DWP rules around reclaiming Winter Fuel Payment cash from pensioners who no longer qualify. This applies to around four million over-65s deemed to be too wealthy to be eligible for the winter allowance.
But the cash is initially paid to all pensioners and then the taxman takes it back in instalments from those who don’t qualify over the following year.

Pensioners could be braced for a cut to their pot. (Image: Getty)
For a £200 payment this will be £17-a-month this year, rising to £33-a-month from April. Winter support was previously universal for all over-65s but is now linked to income.
A £35,000 income threshold is now in place. The cash is paid into bank accounts every November. Overall state pension payments will still go up as they do each year under the terms of the triple lock.
The full state pension is on course to rise to over £13,000 a year from April 2027.
The Government explained: “If your total income is over £35,000, you’ll need to pay back the payment.

Pensioners could be hit by a new cut to their allowance. (Image: Getty)
“HMRC will automatically collect the payment through your tax code unless you already file self-assessment tax returns.
“This means we’ll change your tax code for the 2026 to 2027 tax year. For a typical payment of £200, we’ll deduct approximately £17 per month.
“In the 2027 to 2028 tax year, we’ll deduct approximately £33 per month for a typical payment of £200.
“This is because we’ll be collecting your payments from 2026 and 2027. It will then return to approximately £17 per month for the 2028 to 2029 tax year.”


