State pensioners born before 1959 being sent HMRC letter demanding £300
A BBC expert says millions born before 1959 are set to get an HMRC April letter over repayments. Starting in the fourth month of the year, Department for Work and Pensions (DWP) state pensioners will face having to hand back their Winter Fuel Payment.
The Winter Fuel Payment, worth £200 to £300, was paid to nine million retirees after a Labour Party government u-turn.
But despite payments being issued before Christmas, some retirees face HMRC clawing back their award. BBC Morning Live star Rebecca Wilcox explained: “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.
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“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.”