Wealthy pensioners could be stripped of benefits such as the winter fuel allowance if Labour wins the next General Election, leader Ed Miliband has suggested.

Mr Miliband said the idea would be considered by his party's policy review.

It came as the issue of so-called universal benefits, which are paid regardless of need, hit the headlines again after a Cabinet minister called on well-off pensioners to hand the money back.

Work and Pensions Secretary Iain Duncan Smith came under fire at the weekend for suggesting affluent retirees could give back the benefit voluntarily.

"I would encourage everybody who doesn't need it, to hand it back," he said.

But Downing Street said there was no suggestion the Coalition was planning a change in policy on the winter fuel allowance. However, a new poll yesterday reveals such a move would be popular with the public. Two-thirds said the wealthy should be able to opt out of receiving the cash.

More than eight out of 10 also wanted the allowance to be restricted to those living in the UK, following stories about money being paid to pensioners in Spain.

The Coalition has made a commitment not to means test the cash in this parliament. But Deputy Prime Minister Nick Clegg has said he does not consider it justifiable that millionaire pensioners receive universal benefits. Critics warn the introduction of a means test could prove expensive.

Asked about the possibility, Mr Miliband said: "It needs to be looked at."

Aides later moved to insist he still believed in universality as part of the bedrock of the benefits system.

One added: "Of course we look at all these issues but, as Ed made clear twice in the interview, Labour supports the winter fuel allowance. Labour introduced the winter fuel allowance."

Meanwhile, the Coalition launched a flagship reshaping of the benefits system.

Those living in parts of the north-west of England will receive benefits under the new Universal Credit system– combining Jobseeker's Allowance with others into a single payment.