THE Scottish Government has been left with "no choice" but to end universal fuel payments due to UK plans to means-test the Winter Fuel Payment in England and Wales.
Social Justice Secretary Shirley-Anne Somerville has confirmed the Scottish Government had no alternative but to replicate the decision in Scotland and restrict payments to pensioners who receive eligible benefits.
Somerville (below) said: “Despite all efforts to review our financial position we have been left with no choice but to follow the UK Government and restrict payments to older people who receive relevant eligible benefits.
“This is a necessary decision when faced with such a deep cut to our funding and in the most challenging financial circumstances since devolution. The reduction we are facing amounts to as much as 90% of the cost of Scotland’s replacement benefit, the Pension Age Winter Heating Payment.
“Given the UK Government’s decision to restrict payments to those in receipt of means-tested benefits, such as Pension Credit, and the implications for the Scottish Government detailed above, I have urged the Secretary of State for Work and Pensions to undertake a benefits take-up campaign for Pension Credit and to move forward with plans for a social energy tariff.
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“Both of these measures will provide some further protection to energy customers in greatest need.”
Cuts to the payment initiated by the UK Government are set to reduce the block grant adjustment associated with the payment by an estimated £140-£160 million in 2024-25.
That amounts to nearly 90% of the cost of the Scottish Government's new replacement benefit: the Pension Age Winter Heating Payment.
The launch of the Pension Age Winter Heating Payment will now be deferred to 2025-26, with ministers saying the timing of the UK Government's changes mean it is not possible for the Scottish Government to make changes at such a late stage.
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