Chancellor Rachel Reeves must reverse plans to strip winter fuel payments from millions of pensioners with energy bills set to soar.

Regular Ofgem today announced it is hiking the cap by 10% for a typical household to £1,717 from October.

The jump has prompted demands for the Labour government to abandon the controversial axing of winter fuel payments for around 10 million pensioners.

Shadow energy security and net zero secretary Claire Coutinho MP said: “Instead of prioritising cheap energy, the new Labour government are pursuing Ed Miliband’s reckless net zero targets with no thoughts to the costs.

“And far from their promise of saving families £300 off their energy bills, one of their first acts in office is to remove the winter fuel payment from 10 million pensioners this winter.

“Because they weren’t honest about their plans that means millions of pensioners will have made no plans to deal with higher energy bills this winter.”

Consumer champion Martin Lewis said restricting the previously universal payments of up to £300 to only those receiving pension credit was “too narrow” as he called for a rethink.

He said: “Pension credit is a payment for those on an income of less than £12,600 – that’s very, very low.

“So while I actually agree, there’s a very strong argument for getting rid of a universal winter fuel payment, I think the eligibility criteria is far too narrow.”

The MoneySavingExpert founder suggested limiting the allowance to those in council tax bands A to D, which are lower-value properties.

He told BBC Radio 4’s Today programme: “That would raise eligibility above just those who are on pension credit.

“I have to say it is an imperfect solution, but it is a workable, quick solution, and I’m due to be meeting Rachel Reeves in a couple of weeks on various issues, and I will certainly be pushing that idea to them.”

Pensioners missing out on the payments could be left £500 worse off this winter, according to analysis by the End Fuel Poverty Coalition.

The group’s coordinator Simon Francis said: “For some pensioners, this winter will see them pay more for their energy than they have ever done in their lives.

“That’s the grim reality behind Rachel Reeves’ double blow to pensioners. They have taken away winter fuel payments for millions just as bills increase.

“It shouldn’t need to be said, but pensioners having lower energy bills is vital because the risks of older people living in cold damp homes are greater and results in more pressure on the NHS. Older people may well have additional issues, such as disabilities or underlying health conditions which can be made worse living in cold damp homes.”

Former pensions minister Baroness Altmann insisted that Labour “needs to think again”.

Dennis Reed, director of the Silver Voices campaign group for older people, said the energy price cap rise “exposes the unsustainability of the Government’s political position on the winter fuel payment“.

He added: “Mass protests from older people are inevitable and justified if this brutal policy is enacted.”

Joanna Elson, chief executive at Independent Age, warned the lives of pensioners could be at stake if the Government does not change course.

She said: “As the weather starts to turn colder, older people in financial hardship up and down the country are worried about their budgets.

“Many are on a low fixed income, and they will now need to find more money to cover their rising energy bills.

“To make matters worse for older people in poverty, this bill increase coincides with the ending of the winter fuel payment for people not receiving pension credit.

“There could be up to 1.2 million older people eligible for pension credit who don’t receive it. On top of that, many are just above the eligibility threshold but still live on a low income and struggle to make ends meet.

“We are incredibly concerned about the people in later life who will be cut off from a vital source of income worth up to £300 at a time when their bills are rising.

“We urge the UK Government to delay its winter fuel payment decision to ensure the lives of older people in financial hardship are not put at risk as we approach winter.”

Jan Shortt, general secretary of the National Pensioners Convention, warned that the “grim consequences for older people of these decisions will be much wider and more devastating than simply the cost of energy”.

She said: “The impact on those just above pension credit or on moderate pensionable incomes means more hard decisions to be made on whether to put on the heating or cook hot food.

“We know cold, damp homes kill – taken together with a reduced diet of hot food, and we will inevitably see an increased burden on the NHS and care services.

“For some older people will be a choice of reducing their care packages or stopping them altogether with all the consequences that brings. To cut costs they may terminate broadband packages, which means losing internet access, isolating people and making their everyday lives difficult.

“They may also have to cut down on travel and other activities that support the well-being of older people.

“All of this creates a perfect storm for millions of older people, and there is no doubt that many will not see the spring.”

Meanwhile, Labour MP Rachael Maskell expressed concerns over the move in an article for the Daily Express.

Ms Reeves blamed the state of the UK’s economy when she announced last month that winter fuel payments would be axed for most pensioners.

The policy is expected to reduce the number of pensioners in receipt of the payment by around 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.

The DWP was contacted for comment.