Scottish Government to introduce universal winter fuel payment

Social Justice Secretary Shirley Anne-Somerville has confirmed in a speech to Parliament the Scottish Government will step in to mitigate against the effects of the UK Government's cut to the Winter Fuel Payment.

The cut to the payment was set to affect 900,000 pensioners in Scotland. 

Somerville said: "Ahead of next winter, I will bring forward regulations to introduce a universal Pension Age Winter Heating Payment in winter 2025/26 for every single Scottish pensioner.

READ MORE: John Swinney: Pensioners 'betrayed' by Labour over fuel payment cuts

"This universal benefit – providing much needed support not available anywhere else in the UK – will deliver support across Scotland's older people as we had always intended to do before the UK Government's decision to cut the payment."

The full details are to be set out in the Scottish Government's Budget next week but Somerville confirmed pensioners in Scotland who are not set to receive the Winter Fuel Payment anymore will receive a payment next winter of £100. 

Those who are on qualifying benefits such as pension credit and are currently receiving payments of £200 or £300 will continue to receive those automatically.

In one of its first moves following the General Election, the Labour UK Government announced the Winter Fuel Payment would now only be given to pensioners on certain benefits.

With the benefit due to be devolved this year, the Scottish Government originally said it had no choice but to follow suit in Scotland given it sparked a £147 million cut to the block grant. 

The launch of the Pension Age Winter Heating Payment was deferred to 2025/26 but it will now see all pensioners, regardless of their income, receive a payment to help with their heating costs.

"We have not taken this decision lightly given the pressures on the Scottish Government's Budget," said Somerville.

(Image: Jane Barlow) "But this Scottish Government is determined to stay true to our values. On our watch, we will treat people in this country with fairness, dignity and respect. We will not abandon older people this winter, or indeed any winter, and we will continue to protect our pensioners from the harsh reality of a UK Labour Government."

This year alone, the Scottish Government has already spent £134m mitigating the effects of UK Government welfare decisions, Somerville said.

Charity Age Scotland has described the announcement as a "huge relief" for older people.

Chief executive Katherine Crawford said: "The decision to remove the universal Winter Fuel Payment by the UK Government, and its impact on pensioners this winter, is nothing short of disastrous.

"Over the last few months, we have been urging the Scottish Government to bring this back and we are delighted that they have listened to the strong arguments and have taken action. It also demonstrates the power of devolution and what Scotland can do when we put our minds to it."

Ahead of the statement being made to Parliament, Somerville gave a formal apology for some of the details of the speech being leaked to the press on Thursday morning. 

Presiding Officer Alison Johnstone, as a result, cut the statement short to allow more time for MSPs to question the minister.

Gordon MacIntyre-Kemp, founder of Believe in Scotland, welcomed what he called "a victory for pensioner wellbeing and common sense”. 

He told The National: "The wellbeing of Scotland’s citizens must be core to the operating principles of the Scottish Government and the core value of the cause of independence.

READ MORE: A96 review concludes against full dualling works

"The mitigation of Labour’s Winter Fuel Payment cut combined with the SNP manifesto commitment to pay a wellbeing pension is a welcome start but the Scottish Government must continue to listen to the calls from Believe in Scotland and the grassroots independence movement that we represent and from their own party members to refocus on a wellbeing economic approach."

The announcement comes after Scottish Labour had pledged to reintroduce a universal payment that would later be tapered according to wealth if they came to power at Holyrood in 2026.

Anas Sarwar's party performed the screeching U-turn after Scottish Labour MPs voted for the cut only two months ago. 

Somerville also announced a £41m package of support for people struggling with energy costs this winter.

These measures include an additional £20m which will be provided for the Scottish Welfare Fund, to enable councils to provide more vital support to people in crisis this winter.

Another £20m will be invested into the Warmer Homes Scotland Scheme, the national fuel poverty scheme which helps people install energy efficiency measures and more efficient heating systems, saving on average around £300 per year in household energy bills.

Meanwhile, grant funding of £1m will be made available to registered social landlords and third sector partners to fund work to help sustain tenancies and prevent homelessness.

In a poll commissioned by the Alba Party at the weekend two-thirds of Scots said the Scottish Government had been wrong to follow Labour's decision to means-test the payment.

Alba MSP Ash Regan said: "Alba Party launched our campaign to save the Winter Fuel Payment after the UK Labour Government’s appalling decision to balance public finances at the expense of pensioners, and the Scottish Government’s decision to follow suit after they stated they 'had no choice' to do otherwise. 

"I welcome today’s announcement to answer the Alba Party’s call to reinstate universal entitlement to winter fuel payments - it is a positive step from the Scottish Government towards securing my backing of their Budget.”