One million households across the UK will be detrimentally impacted by the Government's decision to means-test the Winter Fuel Payment, according to new research from a leading think tank.
Analysis conducted by Policy in Practice is warning that 850,000 older people are eligible but not claiming Pension Credit which will be one of the gateway benefits for the up to £300 in energy bill concession.
Some 130,000 pensioners miss out on this support because they are just £500 over the income threshold to claim Pension Credit.
Based on the think tank's research, these individuals will be better off having less income coming in, as well as claiming both Pension Credit and the Winter Fuel Payment.
Last month, Chancellor Rachel Reeves confirmed the changes to the pensioner benefit and claimed it is a necessity due to the £22billion "black hole" in the public finances left by the last Government.
Through the analytics company, administrative data is used to assist local authorities in finding residents who need support and identify unclaimed benefits.
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Pensioners are worried about their upcoming benefit payment support
GETTYAs well as this, Policy in Practice helps councils in accessing local discretionary support, such as the £1billion Household Support Fund,
An estimated £23billion in benefit support from the Department for Work and Pensions (DWP).
Pension Credit is one of the many benefits going unclaimed which is reserved for those of state pension age who are on low income.
In recent years, the Government has made an effort to promote the support but concerns about uptake remain.
Deven Ghelani, the founder of Policy in Practice and one of the architects of the Universal Credit system, gave advice to the current Government about the rollout of Pension Credit to help people access the Winter Fuel Payment.
He explained: "Taking the Winter Fuel Payment from better-off pensioners is one of the few reasonable ways to save money in social security, particularly as they benefit from the triple lock.
"However, there really is no excuse for the shockingly low levels of Pension Credit taken up as many older people continue to struggle with the cost of living.
"The Secretary of State should prioritise simplicity in the benefit system and promote proactive support for people.
"The DWP could start by sharing data with local authorities and widening legislation to allow for automated take-up campaigns for benefits such as Pension Credit.
"If Universal Credit data were shared more widely, we could boost incomes while lowering administration costs."
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The Winter Fuel Payment can help towards energy bills in the winter PAResearch conducted by Policy in Practice found that local authority-led take-up campaigns are able to narrow the gap in applications for benefits.
In a recent London-centric take-up campaign, more than 2,3000 households applied through Pension Credit who did not know they were entitled to it.
According to the think tank, locally based takeup campaigns are proving to be doubly effective compared to national campaigns.
With Policy in Practice's latest project, the organisation is offering services to over 60 councils to help improve the uptake of vital benefits.