The Department for Work and Pensions is reportedly considering a move that could see only pensioners in three council tax bands eligible for the £300 Winter Fuel Payment. This move could potentially save around £1.5 billion a year and extending the benefit to an additional 11 million households. According to Steve Webb, former pensions minister and partner at LCP, more than half of pensioner households (6.3 million) are in band A-C properties.

This is typically associated with lower incomes, which suggests that targeting Winter Fuel Payment at these groups could support poorer pensioners. Tom Waters from the Institute for Fiscal Studies (IFS) believes the simplest approach would be to scrap last summer's policy change and "return to giving Winter Fuel Payment to all pensioners".

During PMQs recently, Sir Keir Starmer said: "I recognise that people are still feeling the pressure of the cost-of-living crisis, including pensioners, as the economy improves.

"We want to make sure people feel those improvements in their lives moving forward. That is why we want to ensure that as we go forward, more pensioners are eligible for Winter Fuel Payments.

"As the economy improves, we want to take measures that will impact on people's lives, and therefore we will look at the threshold, but that will have to be part of the fiscal event."

Mr Webb, the ex-Liberal Democrats Pensions Minister, hit back: "My feeling is that they are deluding themselves if they think a marginal increase in the cut-off point will win them any friends.

"The large majority of pensioners will still lose their winter fuel allowance, and people just the wrong side of the new cut-off will also feel aggrieved."

The Prime Minister has hinted that the means-testing threshold will be lifted so that more pensioners can receive the money, though there remains a lack of details on this.

He told BBC Radio 4’s Today programme: "I want to look again at where the threshold is. That’s for sure. I’ll be clear with you.

"In relation to that, I do think it was our duty to stabilise the economy and to fill in that £22billion black hole. And I’m not going to resile from that."