The UK government’s U-turn on winter fuel payment has raised concerns that Scottish pensioners could receive less support than those in England and Wales. According to The Scotsman, Chancellor Rachel Reeves confirmed that the winter fuel allowance, worth up to £300, will now be automatically paid to pensioners earning under £35,000 annually.
In Scotland, the devolved government offers a separate winter fuel payment of £100 to all pensioner households, a figure that falls short of the UK government’s revised plan. This difference could leave thousands of Scottish pensioners worse off during colder months.
The Treasury confirmed an additional £250 million will be allocated to the Scottish Government through the autumn budget to address the funding gap. However, Scottish Labour has called for an increase in the Scottish winter fuel payment to match the support provided elsewhere in the UK.
Scottish Labour MSP Paul O’Kane said, “The SNP must re-examine their own proposals in light of this game-changing announcement, ensure payments reach those most in need, and give a cast-iron guarantee that no struggling Scottish pensioners will be left out of pocket under their plans.”
The previous Labour policy had removed the payment for most pensioners last summer, causing widespread criticism. The Scottish Government was forced to pause its winter fuel support plans at the time. The current Scottish payment system now offers £100 to high-income pensioners and up to £305.10 for those with lower incomes.
Social Justice Secretary Shirley-Anne Somerville called the UK government’s decision “a betrayal” of pensioners and criticised the lack of consultation. She urged the Treasury to quickly provide details so Scotland can fully understand the implications for its budget.
Ms Somerville said the Scottish Government had originally planned a universal payment, but the sudden change by the UK government last year forced a redesign of the system.
Chancellor Rachel Reeves defended the policy reversal by saying the government had “listened to people’s concerns” and could now widen support after restoring stability to the economy. Ministers confirmed no extra borrowing will be required, although tax adjustments may cover the costs.
The Treasury stated that pensioners with incomes above £35,000 will also receive the payment, but it will later be reclaimed through taxes. Eligible pensioners must have reached state pension age by the week starting September 15.
Social media economist Paul Johnson warned that if no extra borrowing is made, permanent tax increases or welfare cuts could be expected.
The Prime Minister’s spokesperson confirmed that the government’s pledge not to raise VAT, income tax, or National Insurance remains unchanged, with further funding details to be announced during the budget.
Scottish Greens MSP Maggie Chapman criticised the delay in reversing the policy, saying the damage had already affected families and vulnerable pensioners over the winter. She added that broader welfare issues like the two-child benefit cap and austerity policies must also be addressed.
Kemi Badenoch, the Opposition Leader, condemned the Labour government’s handling of the issue, saying pensioners were left to choose between heating and eating last winter. She said, “This humiliating U-turn will come as scant comfort to the pensioners forced to choose between heating and eating last winter.”
Liberal Democrat leader Sir Ed Davey welcomed the change but said the suffering caused during the delay cannot be ignored. He urged the government to ensure that the new plans truly support those in need.
Article updated 4 months ago. Content is written and modified by multiple authors.
