Scottish Government to pass on £100 to Scots for winter fuel bills after Budget

The Scottish Government will pass on £100 to lower-income households this winter after the chancellor announced extra cash to help ease fuel bills in his Budget.

Around 20 million households will get £100 from the UK Government this winter to help with energy bills, John Healey announced on Wednesday.

The chancellor said households in council tax bands A to D in England will get the payments into their bank accounts, with the support costing £2.6bn.

Healey said money would be given to devolved administrations in Scotland, Wales and Northern Ireland, as he called on them to “do the same and give people of all nations in the UK breathing space on their energy bills this winter”.

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John Healey unveiled the UK Government’s tax and spending plans in the House of Commons.

The chancellor also referenced the removal of the gas standing charge announced earlier, which will come into effect “from next year”.

Gas standing charges will be scrapped next year, saving £27 on a typical bill although those with larger homes who use more energy will pay more.

But households not on benefits will bear the full brunt of the rise in January, when bills are due to go up by 27% to an average of £2,192.

Healey also announced the cut to VAT on electricity will be extended to July, taking £50 off the annual price cap.

The Scotland Office has said the Budget will result in a £600m boost to the Scottish Government’s coffers.

However, in response, the deputy first minister said the Budget delivers a “real terms cut” in Scotland’s budget of around £650m in 2027-28.

Jenny Gilruth launched a scathing attack on the Budget, and said while the Scottish Government would “seek to replicate a similar scheme in Scotland”, she didn’t think the support went “far enough”.

Gilruth stopped short of committing to a larger payment and said she would need to work with opposition parties to see what the Scottish Government is able to do.

She said: “The Scottish Government’s budget will be cut by around £650m next year – reducing the money we have to spend on public services and supporting people with the cost of living.

“The Prime Minister has previously claimed that he would respect devolution and the Scottish Government – but his actions do not match his words. Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought.

“The Scottish Government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required. Furthermore, this support does not come close to meeting the promises on which the UK Government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK Government has failed to meet the moment and has failed to keep its promise.

“It is also unacceptable that there was no announcement about ending wider austerity policies which are pushing families into poverty like the bedroom tax, the benefit cap and ‘young parent penalty’ in Universal Credit which would make a significant difference to tackling poverty. The chancellor had the opportunity to lift thousands more families out of poverty, and he has chosen not to.

“We will now take the time to assess the full implications for Scotland of today’s statement. I will be announcing further details as part of the Scottish Budget on December 3.”

Scottish secretary Douglas Alexander said: “This is a Budget that puts money back in the pockets of Scottish households, backs businesses and puts Scotland firmly at the heart of the UK Government’s plan for growth and reindustrialisation.”

He added: “There’s a boost for Scotland’s public services too, with an extra £600m for the Scottish Government to spend.”

Scottish Liberal Democrat leader Alex Cole-Hamilton said the Budget was “missing a real growth plan with Europe at its heart”.

While Scottish Tory leader Russell Findlay said Scots would be “forgiven for asking, is that it?”.

He said: “John Healey’s first Budget was a damp squib which will do nothing to boost economic growth.”

SNP Westminster economy spokeswoman Kirsty Blackman said the Budget showed “the Labour Government doesn’t get Scotland”, adding: “Instead of providing meaningful help, it has abandoned families in the face of soaring bills and has imposed another betrayal on Scotland’s energy – with the decision to scrap Scottish carbon capture funding.

“Andy Burnham promised to cut the cost of living but every major household bill has increased on his watch – and the UK Budget completely fails to address the scale of the challenge families are now facing.”