I absolutely don't think a universal winter fuel allowance is right. In my opinion it should be strictly means tested. However in this case I think for the sake of saving a relatively small amount of money Labour have shot themselves in the foot.
I think Labour could have made the case very well for not squandering money on people who don't need it while caring for those that do by curtailing the payment for the more well off but keeping it for the average Joe. By not raising the threshold to a more reasonable level before stopping the WFA they have managed to alienate a large core of voters. They could have achieved a massive propaganda hit if they had handled the issue with more intelligence.