THE Chancellor has scrapped the universal Winter Fuel Payments to pensioners just as bills are expected to rise this winter.
The cash, worth hundreds of pounds, is paid to all pensioners to help with the additional cost of heating over the winter.
Rachel Reeves in her speech on how Labour will plug a spending gap of £22bn said the allowance will only be paid to those on pension credit or other means tested benefits.
Consumer expert Martin Lewis said bills will be unaffordable for millions of people.
The Chancellor said "let me be clear, this is not a decision I wanted to make”, adding the decision was "the responsible thing to do".
Removing the payment for millions of pensioners will save £1.5 billion per year.
People born before 25 September 1957 were able to get between £100 and £300 to help pay heating bills.
Now only those households with someone aged over state pension age who get one of Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments.
The UK Government said: “This will better target support for heating costs at those who need it.”
The announcement came as a surprise in the Chancellor’s statement and was not in Labour’s election manifesto.
The move has been criticised by consumer finance expert, Martin Lewis.
The founder of the website MoneySavingExpert, said: "The targeting of Winter Fuel Payments is too narrow with the winter we have coming.
“Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.
"The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions.
"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."
