Winter Fuel Payment update: Thousands MORE pensioners to lose £300 energy bill support under Scotland rule change
Scotland will follow the UK Government's lead and means-test the Winter Fuel Payment
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Pensioners have been hit with another blow to their finances as the Scottish Government has confirmed its own universal Winter Fuel Payment will be means-tested going forward.
Thousands of older households will need to be on low-income and receive benefit support from the Department for Work and Pensions (DWP) or Social Security Scotland to qualify for the £300 in energy bill support.
This comes shortly after the announcement from the Labour Government's Chancellor Rachel Reeves that the Winter Fuel Payment will be reserved for those on benefits, such as Pension Credit.
Earlier today, the Scotland's Social Justice Secretary Shirley-Anne Somerville confirmed that the SNP-led Government have “no alternative but to replicate the decision”.
According to official figures, the country's deficit has risen by almost £5billion in the past year which comes within striking deficit of the UK Government's own deficit.
The Scottish Government is set to be given power over the Winter Fuel Payment this winter which its funding to come from the 2024-25 Scottish Budget.
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New Winter Fuel Payment rules are coming into effect GETTY Under previous plans, Scotland was preparing to have its own equivalent of the Winter Fuel Payment: the Pension Age Winter Heating Payment.
This would have replaced the UK-wide benefit with households potentially being eligible for the same level of support.
One-off yearly payment of £100, £150, £200 or £300 would be paid individuals, depending on their age and individual circumstances.
Based on the Scottish Government's figures, one million pensioners would have received the Pension Age Winter Heating Payment every year.
Somerville said: "Despite all efforts to review our financial position we have been left with no choice but to follow the UK Government and restrict payments to older people who receive relevant eligible benefits.
"Given the UK Government’s decision to restrict payments to those in receipt of means-tested benefits, such as Pension Credit, and the implications for the Scottish Government detailed above, I have urged the Secretary of State for Work and Pensions to undertake a benefits take-up campaign for Pension Credit and to move forward with plans for a social energy tariff.
"Both of these measures will provide some further protection to energy customers in greatest need."
As part of the cuts to the energy bill benefit, the block grant adjustment linked with the payment will fall by an estimated £140-£160 million in 2024-25.
These pending changes to the Winter Fuel Payment come just before energy bills are expected to jump in the later half of the year.
Analysts are pricing in Ofgem raising the price cap which will result in the average variable tariff shooting up in costs.
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Pensioners are preparing to lose energy bill support GETTY On the benefit being means-tested, the UK Govenment stated; "This government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.
"We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.
"In these circumstances it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments."