Scottish Government announces all pensioners to receive winter fuel payment from next year
28 November 2024, 15:14 | Updated: 28 November 2024, 15:35
Pensioners in Scotland are set to get help with energy costs after winter fuel payments across the UK were cut by the government.
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Scottish pensioners who lost out on winter fuel payments this year will now receive a new benefit from Holyrood next year, the Scottish government has confirmed.
Labour announced earlier this year that winter fuel payments would be restricted to those on pension credit - a measure that triggered a backlash among voters.
The payment will not be ready until late 2025, Social Justice Secretary Shirley-Anne Somerville told parliament on Thursday.
Ms Sommerville added that pensioners would receive the new benefit from next winter, with wealthier recipients would get a smaller payment of £100.
Under the plans, those currently receiving pension credit or other benefits and who have already received a £200 or £300 payment this year are set to receive the same next year.
The decision looks set to benefit around 900,000 older people living north of the boarder.
Both the UK and Scottish governments earlier this year axed winter fuel payment to all pensioners.
The only exceptions were for those in receipt of pension credit or other means-tested benefits.
The Scottish government, which had intended to introduce a replacement universal benefit across Scotland in April, said Labour’s decision to scrap winter fuel payments to an estimated 10 million people had forced them to push back plans until late 2025.
It comes as it was revealed claims for pension credit have soared by a staggering 150% since the Government announced plans to means-test the winter fuel payment, figures show.
But just 42,500 applications have been approved over the same period - less than 5% of the 880,000 people the Government said were missing out on the benefit in July.
Some 150,000 applications for pension credit have been submitted in the 16 weeks since July 29, when Chancellor Rachel Reeves announced only those receiving the benefit would be eligible for winter fuel payments.
Ms Reeves said the move would save around £1.5 billion and was needed to help fill a £22 billion "black hole" in the public finances that Labour claims was left by the previous Conservative government.
The increase represents a 145% rise in claims compared with the 16 weeks before the Chancellor's announcement. But the number of approvals rose by just 17% over the same period, while refusals almost doubled from 27,100 to 53,100.
Age UK said it is "a massive disappointment" that so many pensioners are having their claims turned down, adding the figures show the Government is "struggling to keep up" with the number of applications.
Caroline Abrahams, charity director at Age UK, said: "The system was not designed to deal with so many applications all at once - a situation which is a direct result of the Government's disastrous decision to severely ration the winter fuel payment with little notice.
"There's still time for the Treasury to soften the blow on pensioners living on low and modest incomes before the worst consequences of its policy change play out this winter, but only just."
Downing Street defended its efforts to encourage take-up of pension credit, with the Prime Minister's official spokesman saying: "We're working hard to ensure as many pensioners as possible take up the support they're entitled to."
The figures come as Britain endures a cold snap, with the Met Office having issued cold health warnings for northern England and the Midlands on Tuesday.
The Government continues to urge pensioners to check if they are eligible for pension credit.
