No guarantee Scottish Government will continue winter fuel payment for all pensioners

The Scottish Government is unable to guarantee that it will provide all pensioners in Scotland with a universal winter fuel payment after the Chancellor announced cuts in the rest of the UK.

Rachel Reeves said those not in receipt of pension credit or other means-tested benefits south of the border will no longer receive the winter fuel payment from this year onwards.

Responsibility for the winter fuel payment will be transferred to the Scottish Government this winter (2024-25), with it funded from the 2024-25 Scottish Budget.

The plan had been for Scotland to have its own Pension Age Winter Heating Payment to replace the UK-wide one.

Everyone who would have been be eligible for winter fuel payment would continue to receive the same level of support – a single annual payment of £100, £150, £200 or £300 for individuals, dependent on the person’s age and their household circumstances.

The Scottish Government said it expected approximately one million pensioners would receive the payment each year.

The Chancellor’s statement means the potential of a funding gap for the Scottish Government. The scale of a such a gap isn’t known yet and likely won’t be until the new Labour Government’s first budget on October 30.

Reeves sparked groans from the opposition benches as she announced the “difficult decision” to cut the payment.

She said the previous Tory government “repeatedly, knowingly and deliberately” made spending commitments without knowing where the money was coming from leaving a £22bn black hole in the country’s finances.

Ivan McKee, SNP minister for public finance, said the Scottish Government had “some difficult decisions to make” and refused to commit to maintaining the universal aspect of the winter fuel payment benefit, adding that the numbers needed to be reviewed.

“We need to see what money is coming to Scotland from the UK Government, how that impacts that total amount of money we’re going to get, what the rest of the picture looks like, and then as we do our budget going forward, we will be able to take a view on what’s possible,” he told STV News.

The Scottish Government said the full implications of the Chancellor’s statement were being examined, however understood that means-testing winter fuel payments would reduce the funding given to the Scottish Government associated with its planned replacement Pension Age Winter Heating Payment.

A Scottish Government spokesperson said: “That such a change can be made without any consultation or discussion with the Scottish Government Ministers is deeply disappointing given both governments committed to resetting the relationship between them.

“The Scottish Government is committed to tackling fuel poverty and has consistently supported vulnerable households through a range of actions.

“We are keen to develop an understanding of the UK Government’s wider plans to protect energy customers in greatest need, such as a social energy tariff.”