Scotland to Launch New Benefit for Pensioners Affected by Winter Fuel Payment Changes

Scotland’s social justice secretary is anticipated to announce a new benefit intended to assist pensioners who no longer receive their winter fuel payments. The BBC has learned that this new devolved benefit is expected to be ready for implementation by next winter. Further details concerning the value of these payments and whether the sum will fluctuate are scheduled to be presented by Shirley-Anne Somerville in a statement to the Scottish Parliament at a later time. The existing winter fuel payment has been discontinued by both the UK and Scottish governments this winter, with the exception of those already in receipt of Pension Credit. It is believed that the Scottish government has secured some additional funds to support older individuals requiring assistance this winter, though this funding is expected to be a relatively modest amount. An estimated 900,000 people in Scotland are being impacted after Chancellor Rachel Reeves eliminated the universal provision of winter fuel payments. This action was part of a series of measures aimed at addressing what Labour has described as a “black hole” in public finances, inherited from the previous Conservative government. The Scottish government, which had been set to introduce a replacement benefit north of the border in April, stated that Labour’s decision left it £150m short, leading to the postponement of those plans until late 2025. In August, Somerville declared she had “no choice” but to comply with the UK government’s decision to limit the pensioners eligible for the payment. This occurred as Scotland’s finance secretary directed ministers to “constrain all but essential” spending to help fund public sector pay agreements. Last week, Scottish Labour leader, Anas Sarwar, appeared to distance himself from his London colleagues by announcing his intention to expand eligibility for the winter fuel payment if his party were to form the next Scottish government. Under the party’s proposals, all pensioners would receive a payment via a devolved benefit, although it would be tapered so that the wealthiest households received less. Sarwar stated that his proposals would “deliver a fairer system that guarantees everyone who needs support gets it”. He explained that all pensioners would receive the benefit – which is currently either £200 or £300 – without needing to apply, but that more affluent Scots would reimburse a portion of it. “A good way of thinking about it is how child benefit currently operates,” the Scottish Labour leader told BBC Scotland. He added, “[It is] widely viewed as a universal payment for everyone, but when it goes beyond a certain income threshold a taper is then applied.” Prime Minister Sir Keir Starmer has previously defended his decision to cut winter fuel payments. He asserted that an increase in the state pension – which is set to rise by £460 per year in April – would “outstrip” losses for those who will not receive the winter fuel payment. As the debate continues, new UK government figures indicate a surge in claims for Pension Credit since the chancellor unveiled plans to means test the winter fuel payment. Reeves announced the move on 29 July. In the 16 weeks since then, approximately 150,000 Pension Credit applications have been submitted across the UK – an increase of almost 150% compared with the 16 weeks before the chancellor’s statement. However, the number of approvals has risen by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100. The UK government is urging pensioners to check their eligibility 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 additional staff to manage claims for the benefit. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external sites. Information regarding our approach to external linking is available.