Scotland’s charity for older people has said the move will push tens of thousands of low income pensioners in Scotland further into poverty, and puts some of the poorest older people at greater risk of ill-health and burgeoning debt.

The Chancellor, Rachel Reeves, announced the decision to means test the winter fuel payment – which is worth up to £300 a year for those of state pension age – on Monday. Anyone who does not receive, or claim, pension credit will no longer get the payment aimed at helping older people with fuel bills over the coldest months.

Katherine Crawford, chief executive of Age Scotland, said: “This move will effectively take money away from some of the lowest income pensioners in Scotland. There are currently more than 150,000 pensioners living in poverty in this country, and we know that many more are living on incomes just above the pension credit threshold. They will now miss out on a payment which could help them heat their homes and stay warm over winter.

“I would urge the UK government to look again at this decision, which affects older people who are already struggling with the high cost of living and will now face being worse off at a time they desperately need support.

“Already we are getting calls to our helpline from older people who are distressed by the announcement and worried about what lies ahead. I would call on anyone in that position to get in touch with our free helpline on 0800 12 44 222 where our advisers can carry out a full benefits’ check to ensure that you are getting everything you are entitled to.”

She added: “We know that around 123,000 pensioners in Scotland who are eligible for pension credit are not claiming it – and they are some of the people who are going to be worst affected when the payment is withdrawn. Just 140,000 pensioners do claim pension credit, which leaves many thousands losing out who really cannot afford to do so.

“The winter fuel payment is due to be devolved to the Scottish Government and our hope is that it will be restored as a universal benefit, particularly in light of the fact that Scotland does generally experience worse weather than other parts of the UK and more than half of those who receive it use it as an important part of winter budgeting. Keeping or reinstating the winter fuel payment will also ensure that money is going to those who need it most, when they need it most.”

The decision has also been slammed by the Scottish Pensioners’ Forum.

Rose Jackson, SPF chair, said: “Right off the mark, it’s no surprise that pensioners are being targeted yet again, being stripped of what they have worked for and are entitled to.

“Too many older people, 4 in 10, don’t apply for pension credit, due in part to the complicated system and the indignity surrounding it, but politicians know these figures but continue to exploit this no end.

“Already those pensioners on the cusp of losing out on pension credit, perhaps by £1 or £2, will see themselves worse off than those who receive it – and they promised us a fairer system?

“Many pensioners have already lost access to their free TV licence and now this, the government should be hanging their heads in shame. Any offset on those who don’t need the payment should be made through taxation not tampering with universal benefits in their first few weeks in office – this is a dangerous path they are treading and doesn’t bode well for what’s to come.

“The UK is already near the bottom of the heap when it comes to state pension and welfare provision for older people, sitting at approximately 25th out of 28 across Europe, this decision could well see the UK plummet all the way to the bottom.

“Energy price projections already see an increase of approximately 10% this winter and so it’s not just the value of the winter fuel allowance pensioners will be losing out on; they’ll also have to find the extra money to plug the ever widening gap in their finances. If the choice between eating and heating was a problem before, its set be even worse now.

“It’s difficult to see that pensioners are being penalised to maintain the U.K. government’s pledge to cut National Insurance rates – why does it always have to be that when changing one thing, it then has to become an attack on the most vulnerable?

“I seriously think that the government will have to take a long hard look at their history books and realise that the winter fuel allowance was put in place by them as a replacement for a percentage state pension rise – it’s not just something that can be withdrawn on a whim when they see fit.”