The families of dead pensioners could be hounded by the taxman under Labour's winter fuel payments U-turn, it emerged yesterday.

Labour's pensions minister faced an angry backlash last night after he claimed that scrapping the winter fuel allowance last year had 'no effect' on the health of older people.

The complicated solution has been mooted after months of scrambling to defuse fury at the policy.

A complicated solution being mooted to defuse fury at Labour slashing the benefit - worth up to £300 - would see it handed to all the older generation this season.

The families of dead pensioners could be hounded by the taxman under Labour's winter fuel payments U-turn, it emerged yesterday.