Every pensioner in Scotland will receive a winter fuel payment next year, the Scottish government has announced.
Social Justice Secretary Shirley-Anne Somerville told the Scottish Parliament those in receipt of qualifying benefits like Pension Credit would get £200 or £300 depending on their age, while all other pensioners would get £100.
The funds will be paid through a new Holyrood benefit, which will not be ready until late 2025.
The UK government scrapped universal entitlement to winter fuel payments – which are set at either £200 or £300 – earlier this year, with only those on Pension Credit or other benefits eligible.
The Scottish government was due to take over responsibility for winter fuel payments in September – but the introduction of a new universal benefit north of the border was delayed after the UK government decision.
Somerville said the change to UK eligibility rules left it with a £150m shortfall, and it had no choice but to push its plans back until late 2025.
The change means an estimated 900,000 pensioners in Scotland are losing out on a fuel payment this winter.
Scottish Conservative social security spokeswoman Liz Smith accused ministers of “hoodwinking” pensioners by “pretending” that the full winter fuel payment was being introduced, when some will actually receive a reduced £100 payment.
‘Harsh reality’
Somerville told MSPs that by next winter those Scots would be entitled to the newly-devolved pension age winter heating payment (PAWHP).
She said: “This universal benefit – providing much-needed support not available anywhere else in the UK – will deliver support for all pensioner households as we had always intended to do before the UK government decision to means-test winter fuel payments cut the funding available to support our new benefit in Scotland this winter by £147m.
“We will not abandon older people this winter or any winter.
“We will do our best to make sure no-one has to make a decision between heating and eating, and we will continue to protect pensioners.”
The social justice secretary also announced an extra £20m in welfare funding for councils in this financial year, as well as an additional £20m for the Warmer Homes Scotland Scheme.
There will be a further £1m for social landlords and the third sector for homelessness prevention work.
Somerville’s statement has been viewed by some as an attempt to outmanoeuvre Scottish Labour leader Anas Sarwar, who have vowed to undo some of the cuts imposed by their Westminster colleagues.
Labour MSPs had called on the Scottish government to use extra UK government funding heading to Holyrood as a result of the Chancellor’s Autumn statement to provide universal coverage to pensioners this year.
Labour MSP Paul O’Kane highlighted that the £41m support package announced by Somerville for this this financial year is equal to a cash boost coming to Holyrood through an increase in Treasury spending on the UK Household Support Fund.
He also pointed to an increase of £3.4bn in next year’s Scottish Budget due to the chancellor’s autumn spending announcement.
The UK government said the decision to cut winter fuel payments was made due to a “black hole” in public finances left by the previous Conservative government.
Prime Minister Keir Starmer said an increase in the state pension – which is set to rise by £460 per year in April – would “outstrip” losses for those who would not receive the winter fuel payment.
However, the state pension increase will be spread over the year from next April, whereas the winter fuel payment is usually paid in November or December.
Surge in benefit claims
It has been previously reported that up to 40% of eligible pensioners do not apply for Pension Credit.
However, new UK government figures show a spike in claims since the chancellor revealed her plans to means test the winter fuel payment.
Reeves announced the move on 29 July. In the 16 weeks since then, about 150,000 Pension Credit applications have been made across the UK – up by almost 150% compared with the 16 weeks before the chancellor’s statement.
Yet the number of approvals has risen by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100.
That means 81,000 more pensioners have received the extra cash since the summer, out of a possible 880,000 people who the government believes are eligible for the money.
The UK government is urging pensioners to check if they are eligible for the benefit.
Those who apply before 21 December will receive backdated payments of both Pension Credit and the winter fuel allowance.
The Department for Work and Pensions has deployed 500 extra staff to handle claims for the benefit.