On 29 July the Chancellor of the Exchequer announced that eligibility for the Winter Fuel Payment (WFP) from winter 2024-25 would no longer be paid on a universal basis to people of pension age, and would instead be restricted to those in receipt of Pension Credit and certain other social security benefits1. The Scottish Government states that the decision reduced the Block-Grant Adjustment associated with devolution of the UK's WFP by an estimated £150 million in 2024-251.
The Scottish Government has mirrored the change in its replacement benefit, Pension Age Winter Heating Payment (PAWHP), which will be administered by the Department for Work and Pensions in 2024/25 under an agency agreement1. PAWHP is a single annual payment of £200 or £300 per individual or benefit household, depending on age and entitlement to relevant benefits during the qualifying week, which is the third week in September1. Those aged 66 to 79 receive £200; those aged 80 or over receive £3001.
Eligibility under the Scottish regulations requires being of state pension age during the qualifying week and receiving a relevant benefit: Pension Credit, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Universal Credit, or Working Tax Credit or Child Tax Credit where the award is not less than £26 for the 2024-25 tax year1. Exclusions cover people receiving free in-patient treatment throughout the qualifying week for more than 52 weeks, those detained in custody under a court sentence, and those living in a care home or independent hospital throughout the qualifying week and the preceding 12 weeks while receiving certain benefits1.
The Scottish Government set out its position on the UK decision:
"After careful consideration, given the significant impact of this decision, and the wider cuts being imposed by the Chancellor of the Exchequer, Scottish Ministers have been left with no choice but to mirror this approach in Pension Age Winter Heating Payment."
The Scottish Government consulted between 23 October 2023 and 15 January 2024 on the delivery of PAWHP, proposing eligibility on a like-for-like basis with WFP1. It received 906 responses: 25 from organisations including Age Scotland, Energy Action Scotland and Citizens Advice Bureau Scotland, and 881 from private individuals1. The Scottish Government states that draft regulations were provided to the Scottish Commission on Social Security before the UK Government's decision, and that the late decision meant there was not enough time for the Commission to scrutinise and publish a report on the revised regulations before they were laid1.
Why it matters for households
For a household of pension age, the change means the payment is no longer automatic by virtue of age alone. Under the restricted rules, entitlement depends on receiving one of the listed benefits during the qualifying week in September, so a pensioner household not claiming Pension Credit or another relevant benefit falls outside the scheme1. The payment is made once per benefit household rather than per person, so a couple receiving a joint claim receives a single payment1. The Scottish regulations provide for automatic payment without an application for people identified as receiving a relevant benefit and of state pension age during the qualifying week, which the Scottish Government says should keep take-up high1. For a home's energy independence, the payment is a contribution towards winter heating costs rather than a change to how a property is heated or powered; the amount is fixed at £200 or £300 and does not vary with consumption1.
What happens next
The Scottish regulations are subject to affirmative procedure in the Scottish Parliament and, if approved, will be made under the Social Security (Scotland) Act 20181. Payments in Scotland in winter 2024/25 will be made by the DWP on behalf of Scottish Ministers1. A determination without application must be made before 31 March following the qualifying week, except where it is based on a person becoming entitled to a relevant benefit for a day in that week, such as a backdated award of Pension Credit, Universal Credit, Child Tax Credit or Working Tax Credit1. Clients have 31 days to request a re-determination, with 56 days for a decision1. Overpayments are to be recovered where the value exceeds £651.