Around 1,500 pensioners in an east London borough will have their Government-slashed Winter Fuel Allowance payments restored from Thursday.
Earlier this year, ministers moved to means test the payment, seeing around 10 million pensioners miss out on the benefit. Around 65 per cent stand to lose the payments, according to an AgeUK analysis.
But in Tower Hamlets, council officials said letters have been sent to eligible pensioners to collect cash payments of £175 from the Post Office to replace the lost cash.
A spokesperson said around 1,500 pensioners were eligible, but that the scheme has been budgeted for up to 5,000 applicants.
Those collecting the payments will need a valid form of ID to receive the cash.
The scheme was formally launched by Tower Hamlets mayor Lutfur Rahman and Cllr Saied Ahmed as they met with local pensioners to hand out warm packs, including gloves, socks, and blankets.#
Alongside the payments, the town hall said it would open up ‘Warm Hubs’ - spaces where residents can stay warm - alongside an awareness campaign to encourage eligible pensioners to claim pension credit.
A council spokesperson said an estimated £17 million worth of Pension Credit benefit is going unclaimed in Tower Hamlets which means more than 4,000 households in the borough are missing out on payments worth on average £3,900 a year
Tower Hamlets mayor Lutfur Rahman said: "I've spoken with many elderly residents who are afraid of being forced to endure life-threateningly low temperatures this winter or having to make the impossible choice between heating and eating because their access to the Winter Fuel Allowance has been withdrawn.
“As winter bites and temperatures plummet, we have stepped in to fill the void left by these cuts, as we have before by becoming the first Council to introduce universal free school meals and to restore the Education Maintenance Allowance.
“We're restoring this vital lifeline for pensioners in Tower Hamlets, who are receiving letters from me, allowing them to instantly collect cash payments at any Post Office branch.
“I urge other councils to follow our lead and call on the government to reverse the cuts to the Winter Fuel Allowance to protect pensioners this winter, as we are in Tower Hamlets."
The news comes after union Unite began legal action challenging the Government’s cuts amid fear that it will push pensioners into poverty.
Unite claims the Government did not follow the correct procedure in making the “cruel” cut.
A Government spokesperson previously declined to comment on ongoing legal cases, but urged people to check if they were eligible for pension credit.
