Current status: Answered by Shirley-Anne Somerville on 14 August 2024
To ask the Scottish Government what assessment it has made of the impact of the UK Government's reported decision to means test Winter Fuel Payment on Social Security Scotland's Pension Age Winter Heating Payment, and any subsequent effects on pensioner poverty levels in Scotland.
The Chancellor has set out plans to end universal Winter Fuel Payments in England and Wales by restricting it to those receiving Pension Credit and other means tested benefits from this year onwards. This decision was taken without any consultation or discussion with Scottish Government Ministers, which is deeply disappointing given both governments committed to resetting the relationship between them.
The UK Government’s approach reduces the Block-Grant Adjustment associated with devolution of the UK’s Winter Fuel Payment by an estimated £140 million to £160 million in 2024-25 – nearly 90% of the cost of the Scottish Government’s new replacement benefit, Pension Age Winter Heating Payment.
Following careful consideration of the options available for Scotland it is with deep regret that I confirm that the Scottish Government must replicate the decision made by the UK Government and restrict eligibility for Pension Age Winter Heating Payment to older people on relevant eligible benefits. This has been a very difficult decision and not one we want to, or expected to, be making. However, despite all efforts to review our financial position it is a necessary decision when faced with such a deep cut to the budget and in the most challenging financial circumstances since devolution.
The timing of the UK Government announcement has meant it is not practical to make changes in good time for the launch of Pension Age Winter Heating Payment. Delivery will therefore be deferred until winter 2025. However, I can offer reassurance that the Scottish Government is in discussion with the Department of Work and Pensions, which has committed to make payments this winter to eligible pensioners in Scotland on terms equivalent to Winter Fuel Payments in England and Wales.
We are also keen to understand the UK Government’s wider plans to protect energy customers in greatest need, such as a social energy tariff, and will work closely to ensure that they take every possible step to drive up the take-up of Pension Credit and other benefits which pensioners are entitled to.