Pensions minister Emma Reynolds blamed the Government’s £22 billion black hole for having to take the decision as pensioners have until Saturday to claim pension credit to make up the shortfall caused by the cut.
Labour backbenchers issued warnings about the impact of means-testing the cost of living boost, but the Government said it would stick to its decision.
The Winter Fuel Payment was previously available to almost everyone in the UK born before September 25, 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.
The Treasury said the changes to Winter Fuel Payment eligibility 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.
Labour backbencher Neil-Duncan Jordan, who represents Poole, told MPs: “The poorest pensioners in our society are those who are eligible for the pension credit but don’t claim it, or just a few pounds above the threshold and they miss out on passported support.
“Means testing by its very nature is simply not the best way to get help to those who need it most, so will the minister reconsider the recent decision to means-test the winter fuel allowance?”
Speaking at work and pensions questions, Ms Reynolds replied: “We won’t reconsider that decision because in a very tight fiscal environment when we inherited a £22 billion black hole from the party opposite, we had to take some very tough decisions.”
Labour MP Rachael Maskell said people in her York Central constituency were going to “really struggle this winter” because of the cut.
She asked: “What additional steps will be taken to ensure that those that miss out on the 21st December deadline will still be able to get support to keep warm this winter?”
Ms Reynolds said: “We are working at pace to process those claims. We’ve deployed an additional 500 staff to make sure that those who are on the lowest incomes get the pension credit that the need.”
She told the Commons that claims for pension credit had more than doubled since the policy was announced in late July.
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She added 880,000 pensioners who had been eligible for the benefit payment did not get it, and that the Government had written to 120,000 pensioners on housing benefit urging them to apply.
Ministers said those who were close to the threshold of having an income of more than £218.15 a week should instead apply for pension credit. Those eligible need to apply before Saturday to qualify this year.
Shadow work and pensions secretary Helen Whately said the decision would push hundreds of thousands of pensioners into poverty. She asked what advice the Government had for pensioners who were unable to put their heating on this winter.
Work and Pensions Secretary Liz Kendall said: “If (she) cared so much about pensioners in the cold, why did her government leave 880,000 not claiming pension credit? Why did she first promise to bring together the merger of housing benefit and pension credit in 2011, and never deliver?
“This Government is taking action. 42,500 more people are receiving pension credit than when she left government, we are determined to act, perhaps she should apologise for her failure.”
