Vulnerable pensioners missing out on the winter fuel payment could be left in dire financial straits, experts have warned.
It comes after chancellor Rachel Reeves said the government would make the "difficult decision" to remove the payment from those who are not in receipt of pension credit or other means tested benefits.
Experts have called the shock announcement a "blow to struggling pensioners" warning it could leave vulnerable older people in a "desperate financial position".
Jon Greer, head of retirement policy at Quilter, urged pensioners on low incomes to check their eligibility for pension credit, as the winter fuel payment will now be contingent on claiming this credit or other benefits.
Greer said: "Unfortunately, despite frequent campaigns by the media and government many pensioners miss out on claiming pension credits.
"This can be down to lots of reasons but often its due to a lack of awareness or a feeling that they won’t be eligible, so they don’t bother. However, if missed, eligible pensioners miss out on a significant boost to their retirement income and also now the valuable winter fuel payment.
"The importance of claiming this credit if eligible cannot be overstated. Pension credit not only guarantees a weekly income to £218.15 if you’re single or £332.95 if you have a partner- but also opens the door to a variety of other benefits. These include help with housing costs, council tax, and heating bills."
He said those unsure about their eligibility can check use an online pension credit calculator to help and apply by filling in an online form, printing and completing a physical form or calling 0800 99 1234.
Currently the winter fuel payment is paid automatically to pensioners of a certain age and is worth up to £300.
Tom Selby, director of public policy at AJ Bell, said the unexpected announcement would represent a significant hit on on the incomes of millions of retirees.
He said: "The shock move will mean it is even more important low-income households entitled to pension credit make a claim this year.
"Worryingly, the latest government estimates suggest just 6-in-10 people who are eligible for pension credit make an application, potentially costing those on the lowest incomes thousands of pounds in lost income. Pension Credit also acts as a gateway to other valuable benefits, including dental treatment and free TV licenses.
“It is therefore absolutely vital the government scales up communications around pension credit to drive an increase in take-up. Failure to do this would risk leaving vulnerable pensioners in a desperate financial position when the cold hits.”
Myron Jobson, senior personal finance analyst at Interactive Investor, agreed, calling it a "blow to struggling pensioners".
He added: "Many pensioners rely on these payments to help with the costs of keeping their homes warm during the coldest months. Without it, some pensioners could face making the harrowing choice between heating their homes and buying essentials like food."
