Winter fuel payments Scotland: Who is eligible for the payments? How much will they get?

The Scottish Government has released the details of its new winter fuel payment after pledging to match the UK government’s scheme.

Social Justice Secretary Shirley-Anne Somerville insists pensioners on lower incomes will now be better off than those in the rest of the UK. However, it appears those on higher incomes may now see their payments taken away completely.

The Scotsman takes a look at what the decision means for Scottish pensioners.

The Scottish Government has unveiled its winter fuel payment scheme.

How much will pensioners receive?

All pensioners with an income of less than £35,000 will receive £203.40 per household. If the household includes someone over the age of 80, this will rise to £305.10.

What about those on higher incomes?

It is understood the payments will now no longer be universal and pensioners with an income over £35,000 will receive nothing.

Initially the Scottish Government had pledged that all pensioners would receive at least £100.

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Liz Smith, the Scottish Conservatives’ social security spokeswoman, said: “The SNP, like Labour, shamefully betrayed pensioners by axing universal winter fuel payments, before being forced into a humiliating climbdown by the public outcry.

“This latest announcement means that hundreds of thousands of Scots will not have the payment even partially restored - despite John Swinney’s promise that they would. This latest slap in the face will not be forgotten or forgiven by the pensioners affected.”

How many pensioners will be eligible?

The Government estimates around 720,000 Scottish pensioners will benefit from this announcement.

How does this compare to England and Wales?

Pensioners in England and Wales with an income less than £35,000 will receive £200, and if they are over the age of 80 they will receive £300.

The difference between the Scottish and English schemes is negligible. However, the Scottish Government can technically now claim they are offering more than the UK government is.

What happens now?

The Scottish Government will now withdraw its previous proposals, which are being considered by the Scottish Parliament.

Work will also go on behind the scenes to ensure those on higher incomes do not receive this payment.

Ms Somerville said: “We are in discussion with the UK government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system.

Social Justice Secretary Shirley-Anne Somerville | Jane Barlow/Press Association

“The intention is that the payment will be recovered automatically, and pensioners will not need to register with HMRC for this or take any further action.

“This approach ensures a higher level of support, which those most in need will receive.”

What happened to winter fuel payments?

One of the first things the Labour UK government did after winning last year’s general election was axe universal winter fuel payments.

Chancellor Rachel Reeves said it was necessary to restrict the payments to those in receipt of pension credit only after discovering a £22 billion black hole in the public finances.

There was an immediate outcry, with the SNP branding the decision a “betrayal”.

The Scottish Government immediately said it would mitigate the cut and continue to provide universal winter fuel payments to pensioners.

Last week, the Chancellor announced in her Spending Review that winter fuel payments would be extended out to include all those with an income of less than £35,000. The Scottish Government then said it would follow suit.