Scottish ministers to announce help for pensioners’ fuel bills

Scottish ministers to announce help for pensioners’ fuel bills

Social Justice Secretary Shirley-Anne Somerville is expected to announce plans to bring in a new devolved benefit to replace the winter fuel payment.

The BBC understands the new benefit is to be ready in time for next winter and will ensure that all pensioners receive some help with their energy bills.

Details about the value of the payments and whether the amount will vary are expected to be set out by Somerville in a statement to the Scottish Parliament later.

The existing winter fuel payment has been cancelled by the UK and Scottish governments this winter, except for those already in receipt of pension credit.

It is thought the Scottish government has found some additional money to help older people in need of assistance this winter but that this funding will be a relatively small amount.

An estimated 900,000 people in Scotland are losing out because of the chancellor’s decision to cut universal provision of winter fuel payments. Only those in receipt of Pension Credit or other benefits get the winter fuel payment.

That came as part of a package of measures aimed at closing what Labour has called a “black hole” in public finances left over by the previous Conservative government.

The Scottish government, which had been due to introduce a replacement benefit north of the border in April, had said Labour’s move left it £150m short and with no choice but to push those plans back until late 2025.

In August, Somerville said she had “no choice” but to follow the UK government’s decision to limit those pensioners who qualify for the payment.

That came as Scotland’s finance secretary ordered ministers to “constrain all but essential” spending to help pay for public sector pay deals.

Last week, Scottish Labour leader, Anas Sarwar, appeared to distance himself from his London colleagues when he announced he would expand eligibility for the winter fuel payment if his party were to form the next Scottish government.

Under the party’s plans, all pensioners would receive a payment via a devolved benefit, though it would be tapered so that the wealthiest households received less.

Sarwar said his proposals would “deliver a fairer system that guarantees everyone who needs support gets it”.

He said all pensioners would receive the benefit – which is currently either £200 or £300 – without having to apply, but that better-off Scots would pay some of it back.

“A good way of thinking about it is how child benefit currently operates,” the Scottish Labour leader told BBC Scotland.

“[It is] widely viewed as a universal payment for everyone, but when it goes beyond a certain income threshold a taper is then applied,” he said.

Prime Minister Sir Keir Starmer has previously defended his decision to cut winter fuel payments.

He said an increase in the state pension – which is set to rise by £460 per year in April – would “outstrip” losses for those who will not receive the winter fuel payment, which is either £200 or £300.

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