From this winter, only those claiming pension credit or other means-tested benefits will receive the payment of up to £300 to help with their fuel bills. The allowance was previously available to anyone over the age of 66.
The move will reduce the number of pensioners in receipt of the payment by ten million, saving the exchequer around £1.4bn this year.
Commenting on the decision, Matthew Cole, head of Fuel Bank Foundation, said: “The removal of universal winter fuel payments will be a bitter pill to swallow for some of the millions of pensioners who will no longer receive the allowance, especially those who are just above the threshold.