New Winter Fuel Payment benefit introduced for some pensioners after Starmer hit by Labour revolt
Pensioners based in Scotland are set to receive a new energy bill benefit after losing access to up to £300 offered in Winter Fuel Payment support, the Scottish Government has confirmed
Speaking to Holyrood, Social Justice Secretary Shirley-Anne Somerville confirmed that the payment will not be available until 2025 but the new allowance has been supported by rebel Labour MSPs.
Earlier this year, Chancellor Rachel Reeves confirmed the Winter Fuel Allowance will be means-tested going forward with claimants needing to be in receipt of Pension Credit from the Department for Work and Pensions (DWP).
This sparked backlash from Labour MPs, charities and poverty campaigners as the decision came before Ofgem’s recent hikes to the energy price cap.
Last month, two Scottish Labour MSPs have rebelled against Scottish Labour lead Anas Sarwar in a Holyrood vote calling on Prime Minister Keir Starmer to U-turn on the decision a cut the Winter Fuel Allowance.
First Minister John Swinney’s non-binding motion calling on Starmer and Reeves to means-testing passed by 99 votes to 14.
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Ex-Scottish Labour leader Richard Leonard and former frontbencher Alex Rowley backed the motion, alongside other Holyrood political parties.
Defending the Chancellor’s decision-making at the time, Sarwar said: “This is a decision that the Labour government did not want to make but they are not responsible for the chaos and damage inherited for the Tories.”
“And why the SNP of all people want to minimise the damage the Tories have done is for them to explain.”In Scotland, every pensioner in the country will be able to claim the new benefit which will go towards paying for rising energy bills.
Scots in receipt of qualifying benefits like Pension Credit will be able to claim £200 or £300 if they are of state pension age, with wealthier pensioners being eligible for £100.
On top of this, Somerville confirmed an additional £20million in welfare funding for councils for this financial year, with an extra £20million being reserved for the Warmer Homes Scotland Scheme.
Furthermore, the SNP-led Scottish Government will give £1million for social landlords and the third sector for homelessness prevention work.
During her announcement of the funding, Somerville explained: “This Scottish Government is determined to stay true to our values.
“We will not abandon older people this winter or indeed any winter and we will continue to protect our pensioners from the harsh reality of a UK Labour Government.”
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According to the Chancellor, the move to effectively cut the previously universal benefit was made due to the public finances she inherited from the previous Conservative Government.
Based on the Treasury’s calculations, the Government is expected to save around £1.4billion this financial year with means-testing in place.
Following the initial announcement, the Scottish Government was forced to fall suit with introducing its own version of the Winter Fuel Payment, administered by Social Security Scotland.
The energy bill support is a devolved for Holyrood to address but the SNP has claimed Labour’s approach would result in a £160million cut to Scottish funding.