Scottish Government ends universal winter fuel payment for all pensioners

Key Points

Following cuts by the UK Government, the Scottish Government is ending universal winter fuel payment for all pensioners
Chancellor Rachel Reeves announced billions of pounds in spending cuts in July
Scotland’s deficit increased by £3.5bn in the last year reaching more than double that of the UK
Scotland’s finance secretary said the deficit was a reflection of UK Government choices and not of the Scottish Government’s
Falling North Sea income and increased spending on health and social protection has driven the gap between revenue and expenditure

The Scottish Government will stop providing all pensioners in Scotland with a universal winter fuel payment after the UK announced cuts to funding.

In July, Chancellor 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.

Scotland’s social justice secretary Shirley-Anne Somerville said the decision left the Scottish Government with “no alternative but to replicate the decision”.

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.

@stvnews
Lunchtime News: Aug 14 Winter fuel payment ends for pensioners. #stvnews #energy
♬ original sound – STV News

Everyone who would have been 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 had expected that approximately one million pensioners would receive the payment each year.

Somerville said the Chancellor’s statement meant the Scottish Government’s funding would be cut by up to £160m.

It comes as figures revealed Scotland’s deficit increased by £3.5bn in the past year, reaching more than double that of the UK.

The Government Expenditure and Revenue Scotland (GERS) report showed a net fiscal deficit of £22.68 billion in 2023-24, compared with just over £19 billion the previous year.