Means testing pension benefits would be cheaper - Webb

Means testing for winter fuel allowance would reduce spending on pensioner benefits despite the administrative cost, the government has said.

Last week, deputy prime minister Nick Clegg attracted criticism by calling for pension age benefits such as winter fuel allowance to be means tested.

Although the Conservatives are said to be set against any means testing, pensions minister Steve Webb this week added weight to the Liberal Democrats' argument for the idea.

In response to a written question from Ben Gummer, Conservative MP for Ipswich, Webb said: "Means-testing winter fuel payments would significantly increase administrative costs, but it is likely that these would be more than offset by decreased benefit expenditure.

"If the payments were to be made only to those in receipt of pension credit the benefit expenditure would be £600 million in 2012-13.

"With current entitlement conditions benefit expenditure on winter fuel payments is forecast to be £2,100 million in 2012-13."

The creation of the universal state pension of around £155 per week, which will begin in 2015, was designed to remove means testing from the cash benefits part of the pension system.

However, the future of the other 30 benefits for pensioners such as winter fuel allowance, free bus travel and free TV licenses is still being debated.