Every Scottish pensioner to get winter fuel payment. Will Labour follow and finally U-turn on cuts?

The Scottish government will reintroduce universal winter fuel payments for pensioners, a move campaigners hope will “pressure” the UK government to do the same.

The benefit – set to be passed by the SNP-run devolved Holyrood parliament – will be paid to nearly a million people next winter.

Pensioners in receipt of qualifying benefits like pension credit will get £200 or £300 depending on their age, social justice secretary Shirley-Anne Somerville said, while all others will get £100. The payment will be limited to one per household.

“On our watch, we will treat people in this country with fairness, dignity and respect,” Somerville  added.

Earlier this year, both the UK and Scottish governments limited the payment to the poorest pensioners only, citing pressures on the public finances.

• Poor, sick and disabled pensioners to lose winter fuel payment: ‘We are incredibly worried’
• ‘It’s disastrous’: Furious pensioners call on government to reverse winter fuel payment cuts

But the decision attracted huge backlash from campaigners. Age UK called it “cruel”; Jonathon Bean, parliament and policy lead at Fuel Poverty Action, told the Big Issue that the cut as “a political choice that will cause huge suffering”.

According to the DWP’s own modelling, limiting winter fuel payment eligibility will push 100,000 more pensioners into absolute poverty by the end of the decade. 

The Scottish government’s decision will offer “some comfort” to pensioners north of the border, said Debbie Horne, Scotland policy and public affairs manager at Independent Age.

“With energy prices set to rise again in January, and a staggering 330,000 older households living in fuel poverty in Scotland, it is clear that changing the eligibility of the payment in this way [means-testing it] was the wrong decision,” she said.

“It is positive that this has been recognised in Scotland, with the Scottish government making a payment available to all older people next year, and we hope the UK government will also reconsider their decision.”

The national government have so far stood firm on their decision to means-test the payment, with chancellor Rachel Reeves declaring earlier this year: “It is the right thing to do, to target money at a time when finances are so stretched, at people who need them most.”

But the fuel cuts threaten the “safety and well-being” of elderly people, claims Simon Francis, coordinator of the End Fuel Poverty Coalition. Restating the payment – albeit at a lower rate – is a good start from the Scottish government, he said, but there are still issues to address.

“Ministers must set a clear and ambitious commitment in the budget to improving the energy efficiency of people’s homes, especially helping those in fuel poverty,” he said.

“And they must also bring back the Fuel Insecurity Fund, which was closed last year. This is a crisis that cannot wait and ministers must use all the funding available to them to help people stay warm and safe this winter.”

Four in ten Scottish pensioners live in fuel poverty. Katherine Crawford, Age Scotland‘s chief executive, fears that £100 will not be sufficient to stave off the worst of the winter cold.

“Bringing back an energy support payment for all pensioners is very good news and will be a huge relief,” she said.

“[But] we’re concerned that £100 won’t be enough for those on low and modest incomes, particularly as there is nothing else for them this winter. We would urge the government to keep looking at what more they can do to bridge the gap.”

There is a political dimension to SNP’s decision. Scots will elect a new devolved government in either 2025 or 2026.

Scottish Labour has experienced a slump in support since the general election, a decline partly attributable to Rachel Reeves’ harsh winter fuel policy.

Announcing the new payment, Somerville pledged to “protect our pensioners from the harsh reality of a Labour government”.

Scottish Labour leader Anas Sarwar has distanced himself from the winter fuel payment cuts, too: last week, he said he would bring it back. “A Scottish Labour government will reinstate the winter fuel payment for pensioners in Scotland,” he said.

“The winter fuel payment was supposed to be a devolved benefit this year and there were additional resources available to the Scottish government through the household support fund.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. This Christmas, you can make a lasting change on a vendor’s life. Buy a magazine from your local vendor in the street every week. If you can’t reach them, buy a Vendor Support Kit.

Big Issue is demanding an end to extreme poverty. Will you ask your MP to join us?