Pensioners have been warned that the majority of them will be almost £450 worse off this winter.

The shortfall comes as the new Labour government axed Winter Fuel Payments for almost 10 million households.

The benefit was previously available to almost everyone in the UK who was born before 25 September 1957 to help cover their heating costs.

However, from this winter only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment - those on the credit will get £200 and £300 if someone is over 80.

The Treasury said the winter fuel changes would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million – so just under 10 million would miss out.

They added that about £1.5 billion will be saved per year by targeting winter fuel payments.

At the same time, energy bills are set to rise by £149 for the average household from October after Ofgem announced it would be raising its energy price cap.

The new price cap figure will be £1,717 from October 1, up from £1,568 previously.

The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.

Jonathan Brearley, chief executive of Ofgem, said: “We know that this rise in the price cap is going to be extremely difficult for many households.

“Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

He also urged consumers to “shop around” and consider a fixed-rate tariff that could save money.

“We are working with Government, suppliers, charities and consumer groups to do everything we can to support customers, including longer term standing charge reform, and steps to tackle debt and affordability,” he added.

Pension payments set for £460 increase

Pensioners in receipt of the full state pension will see their payments increase by £460 in April, according to official wage figures.

The Officer for National Statistics (ONS) reported a total pay increase of 4% in the months up to July.

While this is the lowest increase for nearly four years, it will mean pensioners can expect to see their full, flat-rate state pension go up to £11,962.60 a year from next April – a rise of £460.

Under the “triple lock” guarantee, the state pension increases every April in line with whichever is the highest of average total earnings growth in the year from May to July of the previous year, CPI inflation in September of the previous year, or 2.5%.

As inflation is not expected to be higher than wage growth, the wages figure is likely to be used for the calculation.

But the figures are subject to possible revisions in next month’s data and the Government will confirm the planned increase in the autumn.