State pensioners on high incomes are set to face extra tax charges of around £30 per month from January.

HM Revenue and Customs (HMRC) will take back Winter Fuel Payments from pensioners with a total income over £35,000 and has confirmed 2026 payments will start to be collected in January 2027. Pensioners born on or before June 27, 1960, are eligible for a Winter Fuel Payment unless they choose to opt out, but those with a total individual income that exceeds £35,000 will have the payments automatically taken back by HMRC.

HMRC will automatically collect payments through PAYE tax codes and deduct the amount you owe from your wages, salary, or pension every month until the debt has been fully repaid. This will be the case unless you have already filed a Self Assessment tax return, in which case you’ll pay it through your tax bill instead.

HMRC is already in the process of reclaiming Winter Fuel Payments from high-income pensioners who received them in winter 2025, and if you haven’t opted out this year, your 2026 payment will start to be clawed back from January.

According to HMRC, for a typical Winter Fuel Payment of £200 in both years, pensioners will pay between £30 to £33 extra tax every month. If you receive a £300 Winter Fuel Payment in both years, then your extra monthly tax charges will be higher.

HMRC said: “HMRC will collect two payments through your tax code at the same time. This means you will pay more tax each month.

“Example: If HMRC is already collecting your 2025 payment, your tax code will change in January 2027 to start collecting your 2026 payment. You will pay approximately £30-£33 more in tax each month if your Winter Fuel Payment is £200 in both years.

“If you do not opt out of receiving Winter Fuel Payment, HMRC will change your tax code again in April 2027 to continue collecting your 2026 payment and start collecting your 2027 payment in advance.”

HMRC said the monthly tax deductions will “temporarily rise” to between £30 and £33 per month for a typical payment of £200 as it will be recovering payments for both the 2026 and 2027 winter payments in the 2027 to 2028 tax year.

The tax office added: “This supports the transition to in-year recovery of payments, in line with normal PAYE practice. From the tax 2028 to 2029 onwards, deductions will return to approximately £17 per month.”

The deadline to opt out of receiving a Winter Fuel Payment this year has now passed, but pensioners can opt out of next year’s payment from December 21.

Opting out won’t affect your State Pension, and you don’t need to opt out every year, as you won’t receive a payment in future unless you choose to opt back in.

If you do decide to opt back in, you can do so by contacting the Winter Fuel Payment Centre. To get a payment for winter 2026 to 2027, you will need to contact the service before March 31, 2027.

The DWP said: “You can no longer opt of the Winter Fuel Payment for 2026 to 2027. You’ll be able to opt out of the Winter Fuel Payment for 2027 to 2028 from 21 December 2026.

“If you do not opt out and your total income is over £35,000, you’ll receive the Winter Fuel Payment but HMRC will take it back.”