Shadow chancellor Ed Balls will unveil plans to scrap winter fuel allowance payments for wealthy pensioners in a set piece economic speech at Reuters today.
Balls will say the move will save £100m from ending the benefit for 600,000 pensioners who pay the 40p and 45p rates of income tax.
The winter fuel allowance is a tax-free payment of between £100 and £300, depending on age, paid to all pensioners.
Chancellor George Osborne is due to deliver his second spending review later this month where he is expected to unveil a fresh round of spending cuts.
Balls will say he has a “clear timetable” for reducing the debt and deficit and will demonstrate an “iron discipline” to spending if Labour is elected in 2015.