Fuel poverty charity National Energy Action has welcomed the government’s U-turn on Winter Fuel Payments for pensioners.

Nine million people will now be eligible to receive the payments this winter as all pensioners in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment.

Matt Copeland, National Energy Action’s Head of Policy and Public Affairs, said: “We welcome this new clarity and certainty concerning the Winter Fuel Payment, and it is a relief that it will now go to so many more pension-age households who really need it.

“We mustn’t forget about low-income working-age households, many of whom are struggling to afford their energy bills – they also need more direct energy bill support.”

The estimated cost of the U-turn is around £1.25 billion for England and Wales, which the government says will be accounted for at the Budget later this year.

The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter.

Chancellor of the Exchequer Rachel Reeves said: “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.

“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.”