Chancellor Rachel Reeves at a Downing Street reception for business leaders last week [ Kirsty O’Connor / No 10 Downing Street]

HUNDREDS of pensioners in Camden have been stripped of winter fuel allowance after the new Labour government announced plans to restrict the payments to benefits claimants only.

Age UK Camden said the cuts to the scheme, announced on Monday, would be “disastrous” and warned that one third of pensioners would be hit by the scheme.

The charity said many of the borough’s elderly people are living on low incomes that exclude them from claiming benefits, but are still struggling financially and just above the poverty line. The new government said it wants the payments to go to those most in need and says it has been forced into the cut by the last government’s financial mismanagement.

Ian Ferrie, a pensioner living in West Hampstead, said: “The attack on the already disadvantaged pensioners losing their winter fuel allowance existing on the lowest pensions in Europe will come as a slap in the face and a betrayal to the pensioners that voted Labour. Taking away the winter fuel allowance means they will spend winter in misery not knowing whether to eat or put the heating on.”

He added: “Here’s an idea: why not tax the people making millions in the UK to pay tax? Labour should look at new ways of getting tax from the obscenely super-rich companies, not attacking the poorest in the land who have nothing.”

Winter fuel payments were introduced in 1997 by the last Labour government and have been available to every-one in the UK who has reached state pension age. Payments are made annually each winter and are worth between £100 and £300 – tax-free – with the basic rate paid automatically to anyone claiming the state pension.

In a statement, Age UK Camden said: “It is well established that pensioners tend to do everything possible to avoid going into debt, so if they are worried about their future energy bills, we know their likely response will be to ration their fuel use and economise by reducing their spending on other essentials. “This proposed policy change is therefore certain to result in more older people experiencing a horrible ‘eating or heating’ dilemma.”

They called on the government to axe the means-testing system. Chancellor Rachel Reeves announced the “difficult decision” in the House of Commons on Monday, claiming the last government had a left a black hole in the finances. She shocked opponents with her tone when she went on TV and said that her predecessor, Jeremy Hunt, had “deliberately lied” about the state of the public finances. The use of that word is rare even among the adversarial nature of Labour’s age-old rivalry with the Conservatives.

Mr Hunt refuted the claim and demanded clarity from the head of the Civil Service over spending plans. Several seasoned pundits suggested it had been well known before last month’s general election that there would be tax rises and public spending cuts, regardless of what was said during the campaign.

Ms Reeves said: “It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.” She then announced a series of cutbacks including a cap on care charges for older people, the plan to build 40 new hospitals, a two-mile tunnel close to Stonehenge, and the reopening of disused railway lines. Cutting the pension credit will save £1.5billion.

A Government spokesperson added: “We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy. In these circumstances, it is right that Winter Fuel Payments are targeted at those in most need, and we will work with local authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments.”