As Britain's cold spell continues, the Liberal Democrats have detailed plans to help pensioners save on their fuel bills.

Spokesman Edward Davey said on Friday that older people would be given the option of putting their winter fuel allowance towards the cost of insulating their homes.

The government currently pays £200 annually to pensioners over 60 to help with energy costs during the winter, with the sum rising to £300 for those over 80.

But Davey said that using this cash to help reduce energy use could lead to greater long term savings.

It could also cut winter deaths and help energy companies meet their targets on conservation.

"This package is a much more intelligent use of taxpayers money," said Davey.

"Pensioners could save more than £100 a year, every year, by investing just one year's winter fuel payment - plus the whole country saves energy.

"Energy saver packages bring pensioners savings that last every year - and after the investment is made, the pensioner reverts to winter fuel payments for future years, saving more money off their fuel bills.

"The current scheme has helped some older people but this Liberal Democrat approach will go much further to end the scandal of tens of thousands of old people dying from the winter cold every year."

Some £1.9 billion is spent each year on the current winter fuel payments.

Under the Lib Dem proposals, all pensioners would receive a letter offering them the choice of their existing payment or an energy saving package.

Those who opt for the energy offer would receive a voucher that could be used with approved energy firms which would compete by offering discounts.