The Scottish government will reintroduce universal winter fuel payments for pensioners, in a bid to outstrip Labour ahead of the Holyrood elections.
Nearly a million pensioners will benefit from the SNP government’s mitigation after the Labour UK chancellor, Rachel Reeves, announced her controversial policy to means-test winter fuel payments for older people, which is believed to be partly responsible for Scottish Labour’s poll slump since the general election.
Scotland’s social justice secretary, Shirley-Anne Somerville, told the Holyrood chamber on Thursday that the newly devolved pension age winter heating payment would go to “every single Scottish pensioner” from next winter, pledging to “protect our pensioners from the harsh reality of a Labour government”.
Those in receipt of a qualifying benefit such as pension credit will continue to receive a payment of £200 or £300 depending on their age, while those who do not will get a lower flat rate of £100.
The announcement comes a week after the Scottish Labour leader, Anas Sarwar, sought to distance himself from Reeves’s policy, which she insists was necessary to fill the “black hole” in government finances left by the Conservatives.
Sarwar pledged to reinstate universal winter fuel payments should his party win the 2026 Scottish parliament election.
Sarwar said his plan would mean “a fairer system” for Scotland and show the public that “we have listened”, adding he had been “clear from the outset” that he thought Reeves’s pension credit threshold was too low and that he planned to reintroduce a universal payment for all pensioners, but tapered as child benefit is, so that wealthier people receive less.
Winter fuel payment was set to be devolved to Scotland this year but, after Reeves’s announcement in July, the Scottish government said it had no option but to delay until 2025 as it created a shortfall of £147m.
In October, the UK budget saw a substantial increase in block grant funding of just under £1.5bn, rising to £3.4bn next year.
Somerville also told MSPs that “we will not abandon older people this winter”, announcing an additional £20m for the Scottish welfare fund to be distributed to councils this year, which she said was “the quickest way”.
The new benefit, which is estimated to cost £90m, was announced ahead of next Wednesday’s Scottish budget and anticipated heavy cuts.
Responding to the announcement, Liz Smith of the Scottish Conservatives suggested Somerville was “hoodwinking” pensioners when budget constraints were of the Scottish government’s own making.
