THE Scottish Government should explore making its version of the Winter Fuel Payment “more targeted,” the leader of Scottish Labour has said.

This week, Chancellor Rachel Reeves announced the benefit would move from being universal to being means-tested, sparking outrage north of the Border about a potential £160 million funding gap.

As part of the process of devolving social security, the Scottish Government is due to take control of the benefit this winter.

Ministers have said the universality of the payment – which could be worth as much as £300 for pensioners – cannot be guaranteed.

But Scottish Labour leader Anas Sarwar said the announcement from the Chancellor presents an “opportunity” for the benefit in Scotland.

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Speaking to journalists on a visit to a community project in Glasgow, he said: “This is a new devolved benefit that’s going to come to Scotland this year now that the Winter Fuel Payment is going to be devolved.

“We have an opportunity to do that in a more progressive, fair way and I think the Scottish Government should take that opportunity.

“We’re willing to work with them and representative charities to make sure those that need the payment, those that are going to genuinely be supported by that payment, receive that payment.

“I don’t see the benefit in us giving a payment to those that frankly are millionaires and don’t need the money at a time when people are struggling to make ends meet and our public finances are in a difficult situation.”

The MSP said he was “sympathetic” to those on the edges of receiving the benefit, who would likely lose out, adding he would work with the Scottish Government to adjust the criteria north of the Border if that was required.

(Image: PA)

The Scottish Government’s support for other universal benefits has been steadfast, with things such as free tuition, prescriptions and eye tests being offered regardless of economic circumstances, as well as concessionary bus travel offered to all those under 22 and over 60.

Asked if such a move could lead to other benefits to being means-tested, Sarwar rejected the idea, saying: “We’re not opening up that discussion and that debate, that has been decided in Scotland.”

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Reeves’ announcement came as she attacked the former Tory Government over what she claimed was a “cover up” of a £22 billion black hole in the public finances.

To tackle the issue, she announced Whitehall departments would have to find cuts.

But in the General Election campaign, Sarwar emphatically rejected a return to austerity under a Labour Government, saying in a BBC debate “read my lips – no austerity under Labour”.

Speaking to the PA news agency on Thursday, he said the Government was not returning to austerity, but “getting on with fixing the mess left by this rotten Tory Government that completely destroyed the public finances, and let’s be clear, hid the truth from the public”.

SNP MSP Kevin Stewart said: “Anas Sarwar previously promised that a Labour government would ensure no pensioner had to choose between heating and eating.

“We now know this promise is as empty as his principles with his backing of the new Labour Chancellor’s decision to slash the Winter Fuel Payment.

“The promise of so-called change during the election campaign now lies in tatters as the Labour Party show their true colours and their Scottish branch office row in behind an austerity agenda.

“Scottish pensioners cannot be forced to bear the brunt of more Westminster cuts, but that is exactly what will happen under Labour’s plans.

“The SNP will do everything in our power to stand up for pensioners across Scotland and I call on Starmer and Sarwar to reverse this decision before we see the devastating impact of this abysmal policy this winter.”