Scotland’s Deputy First Minister has claimed the “disrespectful and damaging” actions of the UK Government mean a new benefit to help with the cost of fuel bills cannot be paid to all pensioners.
Ministers at Holyrood had initially hoped the pension age winter heating payment – which is being introduced in Scotland to replace the UK’s winter fuel payment – would be a universal benefit.
But after Chancellor Rachel Reeves announced the UK payment will no longer be made to everyone above state pension age, the Scottish Government said it has “no choice” but to do the same.
Social Justice Secretary Shirley-Anne Somerville confirmed on Wednesday that the Scottish payment will now be restricted to “older people who receive relevant eligible benefits”.
Ms Somerville said the move is necessary “when faced with such a deep cut to our funding”, adding: “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”.
Deputy First Minister and Economy Secretary Kate Forbes said the Scottish Government has been forced to limit payments because “the Chancellor announced this cut to the winter fuel payment just weeks before the Scottish Parliament is due to take on responsibility for the payment – and without any consultation with the Scottish Government”.
She added: “Devolving a policy weeks after cutting its budget by almost 90% is disrespectful to everybody involved in shaping the new Scottish policy.
“Not only does it drive a coach and horses through the devolution settlement, it ignores the disproportionate importance of this payment to households in Scotland, who face harsher winters and higher fuel costs.
“Given we are already facing the most challenging financial circumstances in the history of the Scottish Parliament, Scotland has no choice but to bear the brunt of Labour’s cut to the winter fuel payment.”
Ms Reeves announced last month that the state of the UK’s finances the new Government inherited mean “incredibly tough choices” have to be made, and only older people in receipt of pension credit or “certain other means-tested benefits” will continue to receive the payment.
"These are not the decisions that I wanted to make, but they are the right decisions to make in difficult circumstances, and to avoid them would be irresponsible".@RachelReevesMP on the state of the public finances. pic.twitter.com/PHuzs668x9
— HM Treasury (@hmtreasury) July 30, 2024
Ms Forbes said the Scottish Government and “many others” had urged the UK to “rethink its approach”, with the decision to end the payment for wealthier pensioners said to have reduced the cash Holyrood receives by £160 million.
She said the Labour UK Government had “not changed course”, as she accused Scottish Labour MPs of putting their party before the country on the issue.
Ms Forbes said: “There is an eerie silence from Labour politicians north of the border, who would have been the first and loudest to condemn the Scottish Government if the roles were reversed.
“It is particularly galling to hear no condemnation from Labour MPs who represent areas with the highest proportion of fuel poverty.
“This is their first test, and as we feared, they have put party before country – despite promising otherwise during the election.”
She said the SNP had warned during the General Election campaign “that Labour were not being straight with people about the cuts they would have to make if they took power”.
But she insisted: “It should not be the case that pensioners in a country as energy-rich as Scotland are forced to bear the brunt of spending decisions taken at Westminster.
“People voted for a change of government at Westminster – but Labour’s approach to devolving the winter fuel payment without the original budget associated with it is disrespectful and damaging.”
Scottish Conservative social security spokesman Miles Briggs said: “The SNP Government’s decision to follow Labour’s abolition of the universal winter fuel payment is a hammer blow to many Scottish pensioners.”
He criticised the SNP for its “inept mismanagement” of the economy, claiming it was this that meant ministers could not afford universal payments for older Scots.
Mr Briggs insisted: “The SNP could have chosen not to implement this measure – despite their protests, they seem able to find money at the last minute when it suits them.
“But instead, they’ve opted to pass the costs on to Scottish pensioners and dishonestly pretend they had no choice in the matter.
“The SNP, like Labour, have chosen to betray many vulnerable pensioners. This is an essential benefit and people who have worked their whole lives deserve to be able to heat their homes in winter.”
A UK Government spokesperson said: “The £22 billion black hole in the public finances the UK Government inherited from the previous administration has required us to take difficult decisions.
“We are working closely with the Scottish Government to make this as smooth a transition as possible, and more importantly ensure eligible pensioners continue to receive support.
“The UK Government has protected the poorest pensioners by ensuring people on pension credit or certain other income-related benefits will continue to receive the payment.”
