Prime Minister Chris Hipkins has ruled out means-testing the Winter Energy Payment.
It comes as the ACT party said it could free up $379 million by only providing the payment to beneficiaries and super annuitants with a community services card.
It follows a report on TVNZ's Sunday programme in April, which revealed some pensioners are struggling so much they are sitting in the dark, not flushing their toilets and crying in supermarkets because they can't afford a small piece of fish.
The payment, which recommenced today, is provided to anyone on New Zealand Superannuation, a main benefit or veteran’s pension.
From today until October 1 those eligible can receive payments of between about $20 and $30 a week to assist with energy costs.
Earlier today, social development minister Carmel Sepuloni said having a warm home helped prevent respiratory illness and other health issues.
Those eligible receive it automatically, although they can opt out of it.
ACT leader David Seymour said the payment needed to be targeted to "those who really need it".
"New Zealand can’t afford to be spending half a billion dollars on a Winter Energy Payment that goes to millionaires and beneficiaries alike."
He said ACT proposed to save $379m by repurposing it as a winter hardship payment that only went to beneficiaries and over-65s with a community services card.
"That means the people who really need the support would still get it, while the retired couple who might put it towards a holiday in Fiji won’t.
"Everyone has more money with ACT’s policy. Higher income superannuitants benefit from lower taxes, as ACT would cut the 30% marginal tax rate to 17.5 percent, repeal the 39% tax rate and reverse the Government’s interest deductibility change.
"Too many Kiwi families are struggling just to keep their heads above water. In tough times, it’s about being smart with money, getting it where it’s needed."
In his post-Cabinet media conference today, Hipkins said no changes were on the cards.
"We've made the decision to make the Winter Energy Payment available to New Zealand superannuitants on the basis of their eligibility for New Zealand superannuation and I don't intend to change that.
"I accept that it's a very difficult living environment for a number of New Zealanders and you've seen the recent changes we've made to significantly boost New Zealand superannuation to recognise the effect that the rising cost of living on a range of New Zealanders."
The change he referred to was an April increase to superannuation and the veteran's pension, which provided more than $102 more a fortnight to over-65s and a single person living alone an extra more than $66.
"I'm absolutely ruling out means testing for superannuation or the Winter Energy Payment which is allocated based on the eligibility for New Zealand superannuation."
Asked if there had been any consideration of means testing the Winter Energy Payment, Hipkins said if it had been done at official level - the public service - he was not aware of it.
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