The boss of Octopus Energy has called on energy suppliers to “be helpful” to the Government and provide extra support for pensioners losing out on the Winter Fuel Payment.

Greg Jackson, who founded Octopus in 2016, told PA news agency: “We all know there were some people receiving the winter fuel allowance who didn’t need it – that costs everyone else money.”

He added: “But then there’s the grey area of people losing it that need it – that’s where we can help.”

Chancellor Rachel Reeves announced the squeeze in July as part of a series of measures aimed at filling what she called a £22 billion “black hole” in the public finances.

The benefit was previously available to almost everyone in the UK who was born before 25 September 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 - those on the credit will get £200 and £300 if someone is over 80.

The Treasury said the winter fuel changes 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.

Mr Jackson, who has been vocal in his support for previous Labour policies, said: “In these transition periods, it’s easy for people to kick and scream.

“Alternatively, companies and others can say: ‘How do we make this work in a way that is best for Britain and, in our case, best for our customers?’”

He added that the Government has got to “make difficult decisions. So now let’s be helpful in making sure that when you make those decisions, we can look after the people who will be worst affected”.

However, ministers should keep a “close eye on the impact” of the policy if this winter is colder than usual, Mr Jackson said, and be “ready to act” if more support is needed.

Octopus, the UK’s largest energy supplier, announced last month that it will continue its £30 million assistance fund into this winter for pensioners who do not qualify for state support.

The company also has a range of other measures, including giving out free electric blankets to vulnerable customers.

Nonetheless, energy suppliers have come under pressure for making large profits over the last two years, while bills have rocketed as a result of soaring gas prices.

Octopus turned its first ever profit of £203 million for the year ending April 2023, the most recent year on record, while revenue tripled to £13 billion.

The company’s UK energy retail arm took on £69 million of costs to lower customer bills over the same period.