The Scottish government has confirmed it will follow the UK government’s decision to no longer provide universal winter fuel payments to all pensioners. The benefit, set to be replaced by a Holyrood-run alternative, will now be means-tested, and its rollout has been delayed. Social Justice Secretary Shirley-Anne Somerville said she had “no choice” after the Chancellor cut the funding for the Scottish replacement benefit by nearly 90%.
Finance Secretary Shona Robison stated the government must “constrain all but essential” spending to manage public sector pay increases. Robison has introduced stricter spending regulations, including a recruitment freeze on all but essential posts, suggesting public bodies must make difficult choices. The responsibility for the winter fuel payment was set to be transferred to the Scottish government and replaced with the Pension Age Winter Heating Payment (PAWHP).
However, this has now been pushed back to winter 2025. Holyrood ministers had previously intended for the benefit to be universally available based on reaching the state pension age. Robison said that following the UK government’s move was “one of the toughest decisions” the SNP government has made, as Treasury funding had been cut by between £140 million and £160 million.
Scotland alters winter fuel payments
The development occurred as Scotland’s public spending deficit increased by £3.6 billion to £22.7 billion in 2023-24 due to lower oil and gas revenues. The stricter spending measures mean departmental plans will be subject to greater scrutiny, and some projects may be cut, with details to be announced to the Scottish Parliament.
First Minister John Swinney acknowledged that the government faces tough choices, including funding for the upcoming NHS pay raise. “The Chancellor’s decision to end universal entitlement for winter fuel payments has cut nearly 90% of the funding for the Scottish replacement benefit,” Somerville stated. “This has been a tough decision and not one we want to or expected to make.”
Adam Stachura, policy director at Age Scotland, criticized the cuts, arguing that at least a quarter of a million pensioners on the lowest incomes or living in fuel poverty would no longer receive vital financial support.
He urged the UK government to reverse the cuts. Joao Sousa, deputy director, and senior economist at the Fraser of Allander Institute, noted that while UK fiscal policies contributed to the spending constraints, the Scottish government’s lack of prudent planning also played a significant role. “Questions must be asked as to why this predictable issue wasn’t foreseen,” Sousa added.
He highlighted that the government’s in-year cuts would likely focus on halting spending rather than on a “considered value for money basis.”
As Scotland navigates these financial challenges, pensioners and public sector workers will be closely watching the impact of these decisions on their lives and livelihoods.
