Back in 1997, 45 per cent of pensioners were living in poverty and the then Chancellor Gordon Brown introduced what was called a Winter Fuel Payment (now renamed as Winter Fuel Allowance).

This was a direct payment made to pensioner households and the clever thing about it was that it did not impact those who received additional benefits to the basic pension, nor was it taxable for the wealthier pensioner. It was a very popular policy at the time; arguably it still is but that’s another matter.

The amount paid has increased over time, with the top payment now being £300. Pensioner poverty has fallen since 1997, it now stands at around 16 per cent – still too high but other political decisions have kicked in to support pensioners, including the so-called ‘triple lock’. The decision of the new Chancellor to only pay the Winter Fuel Allowance to pensioners receiving other benefits is one that impacts about 7 million pensioner households (10 million pensioners) who stand to lose £200. I’m not going to pass comment on her decision but it is fair to say it hasn’t gone down well in some quarters.

Coupled with an increase on the Energy Price Cap, we can see pensioners being put front and centre of the energy bill affordability debate. This then opens the door on a whole range of policy discussions. Getting rid of the standing charges and having a system of unit prices only, is one that immediately springs to mind. Looking at the ‘easy to do’ insulation measures – lofts and cavity walls especially, should also gain more attention.

But the question will also be asked, “why pick on pensioners?” Ahead of the budget in October, all we can do is speculate, but I suspect it is unlikely that the Chancellor has reserved the fiscal pain just for this group. Other tax and spend decisions will need to be equally tough to avoid accusations of singling out one group. What this means for energy policy subsidies is therefore open to question.