The recent budget from George Osborne omitted to say that the Government doesn't intend to renew the winter fuel top-up introduced by Labour in 2008.
The cutback means that now over 60s and over 80s will lose out on up to £100 in their winter fuel payments. As at present the winter fuel payment for over 60s is £250 and for over 80s £400. The previous government introduced the top-ups of £50 and £100 respectively.
The bad news for pensioners coincides with rises in fuel prices by the big six energy companies and the threat of further increases later this year.
A treasury spokesman said that the government is not cutting back but simply allowing the top-up to expire as made clear by the last government. He said: "Mr Osborne said live to the House of Commons in his spending review speech last year that the winter fuel payment will remain exactly as budgeted for by the previous government, which had said the temporary increase in the allowance would be allowed to expire from 2011-12."
Ros Altmann director general of Saga said the news was disappointing even though the top-ups had been a temporary measure in the first place. She added that pensioners faced increasing hardship with food and fuel prices set to rise.