Andy Burnham and John Healey deducting £33 a month from state pensioners

Some pensioners will see their payments cut under Andy Burnham and new Chancellor John Healey. Over-65s with annual incomes over £35,000 will be impacted by rules put in place by previous Chancellor Rachel Reeves. The support payments, worth either £200 or £300, are no longer universal for all retirees and are now linked to income.

HMRC will initially take £17 a month from affected over-65s with the amount increasing to £33 from next April. However, everyone initially gets the money before HMRC claws it back from those who don't qualify. The income cut-off point is £35,000, so everyone over this amount is no longer eligible.

The Government explained the position, stating: "If your total income is over £35,000 you'll need to pay back the payment." HMRC will automatically collect the payment through tax codes unless pensioners already file self-assessment tax returns. This means the tax code will change for the 2026 to 2027 tax year.

For a typical payment of £200, the Government indicated it will deduct approximately £17 per month in the 2026 to 2027 tax year. However, in the 2027 to 2028 tax year, this will increase to approximately £33 per month for a typical payment of £200. The higher deduction in this year is because HMRC will be collecting payments from both 2026 and 2027. The deduction will then return to approximately £17 per month for the 2028 to 2029 tax year.

These pensioners will need to be aware of these rules as their payments might be lower than expected. The changes represent a significant shift in how Winter Fuel Support is distributed, moving away from universal payments to a means-tested system. Affected pensioners should ensure they understand the income thresholds and deduction schedules so they can plan their finances accordingly for the coming years.