Charities and campaigners have expressed concern for almost 10 million pensioners facing increased energy bills at the same time as losing their Winter Fuel Payment.

The Government announced in July it would issue payments only to pension credit recipients or claimants of some other means-tested benefits, including universal credit.

About 10 million people will lose the allowance this year.

The annual tax-free payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes in winter.

The number of people who received the payment last winter was 214,000 more than the 11.4 million in 2022-23, and it has steadily risen from 11.1 million in 2020-21, statistics released by the Department for Work and Pensions (DWP) show.

Charities have called for a U-turn and both the Conservatives and the Greens have called for the payments to be made available to all pensioners this winter.

Delegates at Labour’s annual conference backed a union motion calling for the cut to be reversed, although the vote is not binding on the Government and ministers have made it clear the policy will not be changed.

Caroline Abrahams, charity director at Age UK, said restricting the winter fuel payment to those on pension credit was “reckless and wrong” and “spells disaster for pensioners on low and modest incomes”.

Means testing the winter fuel payment is expected to save the Government £1.4 billion this year, which Labour said was necessary to make up the gap between the previous government’s spending plans and the money that was made available to fund them.

Citizens Advice called for “targeted bill support” and the End Fuel Poverty Coalition urged the expansion of other support funds and a reduction in standing charges.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “We’re now heading into the fourth winter of sky high energy prices.

“After October 1, bills will be 65% higher than in 2020/21, meaning the average household will have paid more than £2,500 extra for their energy than had we not been so exposed to volatile energy markets.

“For older people who previously received the winter fuel payment, but will no longer do so under the Chancellor’s new rules, the situation is even worse. For many pensioners, this winter will feel like the most expensive on record.

“What’s worse, there are more price increases on the horizon.

“We welcome the Government’s long-term plans to boost home energy efficiency to bring down bills and to improve energy security to stabilise prices, but these reforms will take time to take effect and will be cold comfort to those struggling this winter.

“That’s why it is so vital the ministers bring in more support for vulnerable households this winter, reductions in standing charges and a social tariff.

“The energy industry has made more than £457 billion in profit since the start of the crisis, so there is plenty of money in the system to be able to ensure everyone stays warm this winter and next.”