Pensioners to lose up to £300 support for energy bills as Labour means-tests Winter Fuel Payment

While speaking in the House of Commons, Reeves stated that she "did not want to have to do this" but the £20billion "black hole" in the public finances left by the last Conservative-led Government has led to strict fiscal rules.

Winter Fuel Payments are annual tax-free payments for older people to help cover the cost of living, namely with rising energy bills.

Households can get up to £300 from this support and Britons have been eligible if they were born were born on or before September 20 1958.

However, the qualifying criteria have been changed in Reeves' first intervention of handling the public finances.

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Britons have been saddled with soaring energy bills amid the cost of living crisis, however, Ofgem's price cap has eased in recent months.

Despite this, experts are sounding the alarm that the regulator's energy price cap is likely to rise by 10 per cent this October just before winter.

In her speech, Reeves stated she would work alongside the pensions minister Liz Kendall to bolster the uptake of Pension Credit.

This is the primary top-up benefit provided by the Department for Work and Pensions (DWP) for pensioners on low income and will qualify someone for the Winter Fuel Payment under the new eligibility criteria.

However, Martin Lewis is warning that Pension Credit claimants are "too narrow" a group to solely be in receipt of extra energy bill support.

On social media, he explained: "Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months.

"While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit.

"Yet again, those just above the thresholds will be hardest hit. This is often justified as there's a 'lack of household income data' to allow other targeting.

"However, there's a usable precedent from the emergency energy crisis measures announced in April 2022, which I'd urge the Government to look at."

Former pensions minister Steve Webb described the Chancellor's latest move as being a "big decision" from the Labour Party.

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The ex-Liberal Democrat said: "Ironically, could easily cost money because there will be a huge drive to increase take-up of benefits - happened when free TV licence limited to over 75s on Pension Credit."

Some 880,000 state pensioners are believed to be entitled to the DWP benefit who are not otherwise entitled to it.

The Government has made a conscious effort to promote Pension Credit in recent years.

Those of state pension age can begin their claim by visiting the Government's website.