'Crude' message for SNP Government over millionaires and the 'universal' £300 winter fuel payment

A new devolved benefit that will replace the winter fuel payment in Scotland should be means-tested and not universal, the leader of Scottish Labour has said.

Anas Sarwar said it would be wrong for millionaires to receive financial assistance at a time when finances are tight.

It comes after Chancellor Rachel Reeves decided to axe winter fuel payments, which are worth up to £300, for some pensioners. She said only those in receipt of pension credit or “certain other means-tested benefits” would continue to receive it.

The Scottish Government is preparing to introduce its own pension age winter heating payment to take the place of the winter fuel payment from this winter. While its website says the new payment “will be paid to everyone over the state pension age every winter”, ministers will now have to determine if this will be affordable in the light of the UK government’s decision.

Mr Sarwar said: "We have an opportunity to make this a more targeted benefit, rather than a universal benefit. Let's look at it in a crude way. We don't need people that are millionaires to be receiving a payment in winter, at the same time when we have a Scottish Government that's saying that because of the public finances, working people earning £29,000 should be paying higher taxes. 

"And so I think we have an opportunity to have a more targeted benefit. I'm sympathetic to those that say the criteria around pension credit might be too tight a criteria, in terms of those who might require the support over the course of winter.”

Mr Sarwar said Scottish Labour was willing to work with SNP ministers and representative organisations "to identify what they believe a fairer criteria would be, and then to implement a more targeted support base for Scotland". 

He said: "That also helps financially in terms of there's obviously a tighter cost if it's a more targeted benefit. But we should also remember there are going to be hundreds of millions of pounds of consequentials coming to the Government as a result of pay disputes being settled elsewhere in the UK."

Shirley-Anne Somerville, the Scottish social justice secretary, previously said the Chancellor’s decision to means-test winter fuel payment was “disappointing and was made without consultation or discussion with the Scottish Government, which contrasts with the UK government’s commitment to have a better working relationship”.

She said the Scottish Government was now “urgently considering the financial impact of the UK government’s cut to winter fuel payment in England and Wales, and what this means for our replacement, pension age winter heating payments in Scotland”.

Ms Somerville added: “The Scottish Government is committed to tackling fuel poverty and has consistently supported vulnerable households through a range of actions.”

Earlier this week, Ms Reeves said she was making “difficult decisions” as she accused the previous government of leaving £21.9 billion of unfunded commitments that it had “covered up from the country”. The Scottish Government’s support for other universal benefits has been steadfast, with things such as free tuition, prescriptions and eye tests being offered regardless of economic circumstances, as well as concessionary bus travel to all those under 22 and over 60.

Asked if such a move could lead to other benefits to being means-tested, Mr Sarwar rejected the idea, saying: “We’re not opening up that discussion and that debate, that has been decided in Scotland.”