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The Scottish Government has been urged to reverse its decision to scrap the fuel insecurity fund.
Scottish Labour leader Anas Sarwar issued a plea for ministers to work with his party to help those most at risk this winter.
Mr Sarwar said the UK Government’s decision to extend the household support fund south of the border is expected to deliver around £41 million in extra cash for Holyrood – enough to pay for the fuel insecurity fund to be reinstated.
The fund, which has been allocated no money in this year’s budget, was used to support the most vulnerable households over the winter and cost £30 million last year.
Scottish Labour said reinstating it could see 200,000 low-income pensioner households receive an additional £200 during the colder months, amounting to a third of all pensioner households receiving support from the Government.
It comes after the UK and Scottish governments announced they would limit winter fuel payments this year to all but the poorest pensioners.
The decision could mean that about 10 million pensioners in England and Wales and about 900,000 in Scotland will lose support they were previously entitled to.
The Scottish Government said it had no choice but to cut the benefit after it lost up to £160 million in funding from Westminster.
On Monday, Scottish Labour said it wanted to work with ministers to introduce a package of support for struggling families this winter.
They include proposals to deliver payments to low-income pensioners not in receipt of Pension Credit, one of the criteria for receiving the winter fuel payment; delivering targeted grants and energy vouchers to those most in need; and a campaign to encourage the uptake of Pension Credit.
Charities have expressed fears that not enough pensioners are aware they are entitled to the benefit and could lose their winter fuel payment as a result.
Instead of focusing on what it can’t do rather than what it can do, the Scottish Government could work with Scottish Labour to make sure this package is delivered to support Scots— Scottish Labour leader Anas Sarwar
The Scottish Labour leader criticised the Scottish Government’s decision to axe the payment but said he would work together with ministers to offer support to pensioners.
Mr Sarwar said: “The months ahead will be difficult for many people across the country – that’s why Scottish Labour stands ready to propose a package of measures to support Scots over the winter.
“Labour is providing funding to support those most at risk and we need to make sure this money gets to those who need it.
“Under our plans, low-income pensioners currently ineligible for Pension Credit could receive support and the SNP’s axing of the winter insecurity fund could be reversed.
“Instead of focusing on what it can’t do rather than what it can do, the Scottish Government could work with Scottish Labour to make sure this package is delivered to support Scots.
“Scottish Labour is ready to work with the Scottish Government to deliver on these options and offer a lifeline to thousands of Scots.”
Social justice secretary Shirley-Anne Somerville said: “The UK Government’s decision to restrict eligibility for winter fuel payments was taken without consultation or discussion with the Scottish Government and will reduce the funding available for the devolved Pension Age Winter Heating Payment by around £150 million.
“As a result, the Scottish Government no longer has the funding to deliver our own devolved payment, the pension age winter heating payment, as intended. Our analysis indicates roughly 900,000 pensioners will no longer be entitled to support with heating costs this winter.
“Ending poverty is the top priority of the Scottish Government and we are determined to do all we can to deliver action at the pace and scale required to meet our targets, within our limited budget.
“We are yet to receive confirmation of Barnett consequentials to the Scottish Government and we do not expect further detail until the UK Budget at the end of October. However, the UK Chancellor has already been very clear that there will be ‘difficult decisions’.”
She added: “We have allocated £3 billion a year since 2022-23 to polices which tackle poverty and the ongoing cost-of-living crisis. This includes providing free bus travel for around two million people, free school meals for all children in primaries one to five, and social security benefits and payments which are only available in Scotland.
“We are committed to supporting older people and tackling poverty. In contrast to the UK Government’s cold weather payment, our new winter heating payment guarantees a reliable annual payment of £58.75 to people on low incomes in Scotland, including pensioners in receipt of Pension Credit and other relevant benefits each winter.
“The Scottish Government stands ready to work with the UK Government – however this must be matched with action in the budget this month. We continue to call on the UK Government to reverse its decision to means-test the Winter Fuel Payment.”
