The majority of pensioners living below the “poverty line” could be at risk of having their Winter Fuel Payments stripped, a former pensions minister has warned.

The benefit was previously available to almost everyone in the UK born before September 25, 1957 to help cover their heating costs.

However, from this winter only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment.

The Treasury said the changes would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million – so just under 10 million would miss out.

They added that about £1.5 billion will be saved per year by targeting winter fuel payments.

Sir Steve Webb, who is now a partner at pension consultants LCP (Lane Clark & Peacock), said analysis suggests that about 1.6 million older people who are below what is commonly regarded as the poverty line do not receive pension credit.

LCP analysed Department for Work and Pensions (DWP) statistics on low-income pensioner households.

It said that while there is not an official poverty line, the main benchmark used, both in the UK and internationally, is having a household income below 60% of the national median average.

The latest DWP figures indicate that in 2022/23 there were 1.9 million people over pension age across the UK living below this income level.

Analysis by LCP suggests 0.3 million of these people are receiving pension credit.

It said the remaining 1.6 million do not receive pension credit and could potentially miss out.

People in this category may not receive pension credit simply because they have not claimed.

About 800,000 pensioners are thought to be in this position. The Government has launched a campaign to encourage those eligible for pension credit to claim it.

Sir Steve said: “There is a range of ways in which the Government could target spending on winter fuel payments, but our analysis shows that limiting payments only to those on pension credit will leave the vast majority of pensioners below the poverty line losing out.

“As an alternative, winter fuel payments could be targeted on those in lower value properties, which would protect most poorer pensioners, but would dramatically reduce the saving to the Chancellor.

“Taxing winter fuel payments would raise far less than the Government’s plans and could be administratively complex.

“It is ultimately a matter for politicians to decide on the balance between raising revenue and protecting the vulnerable, but it is clear that continuing payments only to those on pension credit will mean large numbers of already low income pensioners losing out.”