The number of people who received winter fuel payments plunged to 1.3 million following controversial cuts by the government, new figures have revealed.

In previous years, more than 11 million people in England, Wales and Scotland received the payment, which helps pensioners cover winter energy bills.

But a Treasury decision to means-test the payment led to the much lower number of recipients last year, new official figures from the Department for Work and Pensions (DWP) show.

That policy has now been scrapped, with a U-turn by the chancellor in June meaning that the vast majority of pensioners will again get the payment – worth up to about £300 per household – this coming winter.

The winter fuel payment was previously paid to all pensioners to help with energy costs during the coldest period of the year.

But in July 2024, the government said future payments in England and Wales would go only to those on low incomes who received specified benefits such as pension credit. In Scotland, ministers planned to mitigate some of those cuts.

Chancellor Rachel Reeves said the move was needed owing to the state of the public finances.

However, following widespread anger and a backlash from some Labour MPs who blamed the policy for their party’s poor showing in local elections in May, Reeves announced a partial reversal.

Pensioners with an annual income of £35,000 or less will now be eligible for the payment, and will receive a letter about it in October or November.

It means more than three-quarters of pensioners will receive the help this winter. This policy will be matched by the Scottish government.

The winter fuel payment in England and Wales is worth £200 for people of state pension age up to 79-years-old. People aged 80 or older receive £300.

In Scotland this coming winter, the payment will be increased in line with inflation, which charts rising prices, so will be worth either £203.40 or £305.10 per household.

Energy bills will rise by 2% in October, under energy regulator Ofgem’s price cap, unless a household is on a fixed deal.

The latest data comes as pensioners were also given a strong hint about the likely rise in the state pension next April.