CONSERVATIVE MP for Central Devon Mel Stride has warned the government’s decision to restrict the winter fuel payment for pensioners could backfire, describing it as “economic illiteracy”. 

The winter fuel payment gives pensioners a yearly boost of between £100 and £300 to help cover their heating costs in winter. 

The government announced at the end of July that, starting this year, only people getting pension credit or other means-tested benefits would be able to get the cash handout. 

Mel Stride, who is Shadow Work and Pensions Secretary, said only allowing those on pension credit to be eligible for the payment would “see more pensioners going on to that benefit to qualify”. 

Around 850,000 eligible households are not claiming pension credit with up to £1.7 billion unclaimed, according to Department for Work and Pensions figures published in June last year. 

“Eight hundred thousand qualifying pensioners are not claiming pension credit,” Mr Stride said on X. 

“If just a quarter now do then cost is £440 million plus £50 million in winter fuel payments, so half a billion of the supposed savings wiped out.  

“Ignore behavioural effects at your peril." 

Mel Stride was previously Work and Pensions Secretary in Rishi Sunak’s government for just over a year and a half. 

He narrowly avoided losing his Central Devon seat at the general election in July, beating Labour by just 61 votes. 

He is currently running to be Conservative leader alongside Dame Priti Patel, James Cleverly, Tom Tugendhat, Robert Jenrick and Kemi Badenoch.